Loan Programs

What Are The Basic Loan Types?
There are many loan products designed to meet the borrowers individual criteria. Most of these products fall into a few basic loan types.

• 30, 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.