Mortgages & Financing

• Choosing a Mortgage Lender
• Choosing a Loan
• Down Payment Options
• A Mortgage
• Down Payment
• The Conventional Rate Mortgage
• The Adjustable Rate Mortgage (ARM)
• The FHA Loan
• The VA Loan
• Mortgage Estimator

Choosing a Mortgage Lender

Obtaining a Mortgage is usually the largest financial investment that you will make in your lifetime; therefore you should make sure you use a knowledgeable individual to process your loan. It is important to find out if you are working with an individual that is licensed or not. A loan officer typically is not knowledgeable in all aspects of the loan process, and they are limited in the loan options that they can offer you. A licensed Mortgage Broker has taken the time to obtain the required state educational requirements, and passed the state exam and keeps abreast of all changes in the Federal and State laws.

Choosing a Loan

There are hundreds of different loan products available to suit each individual's specific needs. Here are just a few. Please contact us and a licensed Mortgage Professional will fully explain each product and suggest a loan that would be best for you.

• 100% financing available (Certain restrictions and credit score apply)
• 30 Year Fixed, 20 Year Fixed, 15 Year Fixed, 10 Year Fixed
• 1 month, 6 month, 1 year, 3/1, 5/1. 7/1 10/1 adjustable rate mortgages
• Interest only loans
• Loans that have a start rate as low as 1% with 4 payment options each month (Start rate, Intrerest only, 30 year fixed, 15 year fixed)
• Stated Inclome Loans
• State Income/Stated Asset Loans
• No Doc Loans
• Construction Perm Loans
• Lot Loans
• Home Equity Lines of Credit
• Second Mortgages
• Owner occupied, second homes, investment properties
• Financing available down to a 500 credit score

Down Payment Options

1. Personal Savings
2. Gift Letter
3. Personal Reserves/Sellable Assets
4. Home Equity
5. Joint Ownership

A Mortgage

A mortgage is a loan for the cost of the property. The title is held by the lending institution until you pay the loan back according to its terms. The length of time you have to pay it back, under what circumstances you can repay early, the interest rates you pay for use of the loaned money, and other terms, are all spelled out in the contract for your mortgage. You will be expected to put some cash money into your purchase, and you may have to prove to the bank that you have enough other money to make your payment. Some mortgages are assumable, meaning the person you sell the house to can assume your debt, and take over the loan payments.

Down Payment

The down payment on your home will guarantee the lender that it will not lose money if you fail to pay your debt. The lender requires the mortgage to be less than the value of the house, so that the loan will be paid back if the house has to be sold. The down payment makes up the difference between the cost of the house, and the loan you can get to purchase it.

The Conventional Rate Mortgage

This is a Mortgage with an interest rate that will stay the same for the entire term of the loan. Interest rates change daily.

The Adjustable Rate Mortgage (ARM)

An Arm is a mortgage that has an initial fixed period then adjusts depending on market conditions on either a monthly or annual basis. All Arms have an initial adjustment cap for the first change then a lifetime cap over the term of the loan. Example: a 3/1 Arm with an initial adjustment cap of 2% and a lifetime cap of 5% means that the initial interest rate is fixed for the first 3 years, and then on the 37 th month it can adjust up or down no more than 2%. The rate then is fixed again for the next 12 months and adjusted each 12 months thereafter. During the entire term of the loan the interest rate can never go higher than 5% above the initial start rate. Lenders all use one of the indices i.e., Libor, MTA or COFI. During the adjustment the lender takes the Margin that is set at time your mortgage closed then adds the Index and rounds it to the nearest 1/8 of a point, that is your new interest rate until the next change.

The FHA Loan

FHA loans are insured by the Federal Housing Administration. This makes this a very low risk loan for the lender. These loans are designed to encourage lenders to make loans for residential properties. The terms are also favorable for the buyer, and are worth consideration.

The VA Loan

These programs offer long-term financing to eligible veterans or their surviving unmarried spouses, with little or no down payment required. VA loans are guaranteed by the Veteran's Administration.