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Fixed-Rate
Mortgages
Refinancing into a fixed-rate mortgage provides the peace of mind of
knowing what the mortgage payment will be for the life of the loan (excluding
property tax fluctuations). A fixed-rate mortgage has the same interest rate for
the life of the loan. Loan terms will vary among lenders, but generally,
fixed-rate mortgages offer payment terms of 15, 20, and 30 years.
Adjustable-Rate
Mortgages
Homeowners often choose to refinance to adjustable-rate mortgages (ARMs)
when interest rates are high, or when they want to trade in a higher fixed-rate
mortgage for a lower-rate ARM. Loan terms will vary among lenders, but
generally, adjustable-rate mortgages offer rate adjustment terms of one, three,
five, seven, and sometimes ten years.
ARMs are tied to a financial index, which is generally a published number
or percentage, such as the average interest rate or yield on Treasury bills.
Financial indexes fluctuate, so homeowners often choose to change from one type
of ARM to another, or refinance with the same type of ARM, to get a lower rate.
Although an ARM usually offers a lower initial rate, mortgage payments can
change periodically (usually once or twice a year). Interest rate changes
typically are subject to a limit or cap for each adjustment and for the life of
the loan.
Interest Only Programs
An "Interest Only" Mortgage loan is a very popular alternative
to traditional fixed rates. Gaining popularity at record speed these home loans
allow a consumer to make "Interest Only" payments during a defined
period of time for the loan.
These programs can offer consumers greater purchasing power, increased
cash flow and a number of other benefits. For example, one of the most common
programs a is a 5 year interest only loan where the borrower has a fixed rate
for five years and is only obligated to pay the interest owed every month. This
could mean hundreds of dollars in monthly savings, increased purchasing power
(since you may qualify on the interest only payment) and more.
Additional
Loan Types
VA Loans
INTEREST ONLY
FNMA Loans
ZERO DOWN PROGRAMS
FHA loan Limits
HIGH DEBT RATIO LOANS
JUMBO LOANS
LAND
LOT
LOANS
3/1 ARM
CONSTRUCTION LOANS
5/1 ARM
FLEX 97 LOANS
7/1 ARM
NO DOC/STATED INCOME
10/1 ARM
STATED INCOME
OPTION ARM'S
NO INCOME/NO ASSETS
80/15/5
2ND MORTGAGE LOANS
80/10/10
1-THUR D PROGRAMS
80/20
INVESTOR LOANS
100% FIRST TIME HOMEBUYER
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