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Contact Info:
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George G Martin |
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Phone: 404-814-3762 |
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Fax: 404-814-3761
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Loan Programs
There are many loan programs to fit almost any need. Please call and ask which loan program best fits your situation.
Recommended Programs
Use the information below to choose the best program for your need.
Years you plan to
stay in the house: |
Recommended Program(s): |
| 1 - 3 |
3/1 ARM |
| 3 - 5 |
3/1 ARM or 5/1 ARM |
| 5 - 7 |
5/1 ARM or 7/1 ARM |
| 7 - 10 |
10/1 ARM or 30 year Fixed |
| 10+ |
30 Year Fixed or 15 Year fixed |
- 30, 25, 20, 15, 10 YR Fixed Rate
Payment and rate stay the same from start to finish - 5 and 7 Year Balloons
Lower start rate. Some of the balloon programs may be converted to an adjustable rate or a fixed rate after the 5 or 7 years, with very low fee and attractive rate - Adjustable Rate Mortgage (ARM)
Lowest start rate. Adjusts either every 6 months or every 12 months depending on program and grade and is based on the economy.Typically has a 2% rate cap per adjustment and a 5%-6% ceiling depending on lender. - 3/1 ; 5/1 and 7/1 Intermediate ARM
Rate is fixed for the first 3, 5, 7, or 10 years, then converts to a one year or 6 month ARM for remainder of term. - Interest Only ARMS and Balloons,
These programs require the payment of interest only for a set period of time. The rate may adjust every month, six months, year or, like the intermediate ARM programs, may be fixed for 3,5,7 or 10 years. Some programs allow for negative amortization. Some have a monthly minimum payment. Options regarding the documentation of income vary. Specialty products require strict underwritting standards. Contact us to personally discuss your situation.
Which Program is best for me?
Here are a few things to keep in mind when selecting a loan program.
| 30, 25, 20, 15, 10 YR Fixed Rate |
| Advantages: |
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Disadvantages: |
Maximum interest deduction for taxes, sometimes easier to qualify, stable predictable payments, high loan to value, lower down payment, possible secondary financing if needed. |
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Pay more interest over the life of the loan; higher starting interest rate; lower debt ratio (larger income to qualify); higher monthly payment. |
| 5 and 7 Year Balloons |
| Advantages: |
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Disadvantages: |
Lower starting rate than 30 year fixed; great for refinancing from a higher rate use when you plan a move in 5-7 years; some are convertible to 30-yr fixed or a treasury ARM; low fees; good rates. |
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Program may call for a higher interest rate after the initial fixed period. Higher payments may strain budget. |
| Adjustable Rate Mortgage (ARM) |
| Advantages: |
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Disadvantages: |
Lowest starting interest rates help qualify for higher loan amounts; if you plan to sell within 2-3 years; if you expect your income to increase. |
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Loan Balance Due can change long term financial planning if you plan to live there over 7 years. |
| 3/1 ; 5/1 and 7/1 Intermediate ARM |
| Advantages: |
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Disadvantages: |
Lower beginning rates translates to lower payments; easier to qualify. may fit duration of time in the house. |
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Will adjust to the market rates after the initial fixed period; market rates may be higher or lower than start rates making budgeting and long term financial planning difficult. |
| Interest Only ARMS and Balloons, |
| Advantages: |
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Disadvantages: |
Lowest possible monthly payments. |
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No equity build up; programs allow for the rate to change; some programs allow for negative amortization; initial rate may be higher than a corresponding amortizing ARM program. |
Common Questions
The following may help in answering some of your questions.
- If I am planning on staying in my house for another 3-5 years, what is the best program?
Once you know that you may only stay in the house for another 5 years, the best program usually ends up being the 3/1 ARM program. While it is not a direct match to your time horizon, the overall payments over the time horizon may work out better. ARMS can be looked at like an inaurance policy, what is my fixed (safe) period and what are my risks? In many cases, a 3/1 ARM will be from .6250% to .750% better in rate than a 5/1 ARM. This means that for the first three years of a 5/1 ARM, you are paying a .750% premium to know what the rate will be for year 4 and year 5. Since a 3/1 ARM is capped at a 2% adjustment for year 4, the net is that the two programs are exactley the same in total payments with the 3/1 ARM offering better payments in the front.
Additional Comments
Everyone's financial situation and financial plan differ. What may be the right program for your neighbor, may not be the right program for you. With such a wide array of features and options available in the marketplace, making an informed decision can be daunting. When it comes to home financing, the location of your home, the timing of your home sale, renovation plans, your tax plan, investment goals, liquidity needs, the current interest rate environment, future changes in your employment goals, educational needs, and retirement goals are all part of the appropriate solution. Having a knowledgable, experienced, and trusted mortgage and real estate advisor is critical. Premier Atlanta Mortgage Company would encourage any prospective client to schedule an appointment to fully assess their personal financial situation and the appropriate programs available. Buying and financing a home is one of the largest purchases a family can make. Using real estate strategically and evaluating the appropriate amount of risk and leverage for your situation is much more than just getting an interest rate quote. It requires a company who you can look to as your long term partner.
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