You have a wide variety of programs that can give you long term safety, maximize cash flow or minimize funds needed for closing. By talking to one of our licensed mortgage professionals, we’ll figure out the best program that meets your financial goals.
Most common loan in the industry, a fixed loan is considered the safest loan option since the interest rate and payment always remains the same.
Typically a 5 year or 7 year arm, otherwise known as an adjustable-rate mortgage, is the most common type of arm program. The rate and payment remains constant during the 5 or 7 year period. After the fixed period is over, then the rate adjusts either up or down depending the market.
Borrower’s that benefit the most from ARM loans are looking for LOWER interest rates to maximize cash flow. Typically the home owner is not looking to stay in the loan for more than the fixed arm period whether it be to sell the property in the future or change the loan program in the future.
An Interest Only mortgage allows borrowers to pay ONLY the interest on a mortgage instead of paying interest AND principle.
Jumbo mortgages, also called NON-CONFORMING loans, are mortgages that are above certain loan limits. These limits differentiate based on property (Single Family Home or 1-unit property, 2-unit properties, 3 unit properties and 4 unit properties).
Rates are typically higher than the conforming loans, therefore they are considered to have a bit more risk. As a result, rates for Jumbo loans are higher than the conforming loans, but they still offer the same loan programs as conforming loans (fixed, arm, interest only)
One of the more popular loans for home purchase during the past several years are FHA loans. FHA loans need less monies for a down payment (only 3.5%) than the conforming or Jumbo loans.