Please scroll down to see details
about the various types of loans available.
Bi-weekly payments, primary residence, vacation or second
homes, & investment property:
$10,000 minimum loan, no maximum loan. Bi-weekly payment plans
available. This payment plan can cut your mortgage term from 30
years to just 23 years saving you literally thousands of dollars.
One half of a mortgage payment is automatically drafted from your account
every other Friday. Every two weeks is not the same as twice
a month. There are 52 weeks in a year; therefore, you make 13
mortgage payments in a year instead of 12 in a very painless sort of way.
This payment plan is available on any loan product we sell. Also,
this may be added to any mortgage program after it closes, even if we
did not originate the loan to begin with. Cost $325 up front and
2.95 per automatic transfer.
- 30, 20, 15, & 10 Year fixed rate:
or
anything in between. You tell us the number of years and we'll tell you
what you will pay each month. Tailor-made loans to your
own specifications. Rates are fixed the entire life of the term.
- 30, 20, 15, & 10 Year fixed rate with a 2/1
buydown:
A 2/1
buydown means you give the bank 3 points and they slowly dole it back
out to you. Say the rate is 7.5%; with a 2/1 buydown, you buydown the
rate 2% to 5.5% in the first year and 1% to 6.5% in the second year. There is nothing magical about it. They are giving you back your own
money. The key is that you qualify based upon the first year's rate,
meaning you can afford more of a house based upon the same amount of
income, all things the same. From 5-10% down depending on loan program.
- 30-Year fixed rate and adjustable rate FHA Loans with
and without buydowns:
- 30-Year fixed rate VA Loans with and without buydowns:
- 1-Year Adjustable Rate Mortgage (ARM):
This
is a loan program where the rate is fixed for only one year at a time.
Generally, an ARM has 2/6 caps which means the maximum the rate can change
is 2% above (or below) the previous year and 6% over the entire life of
the loan. Usually these loans have a teaser rate in the first year,
meaning the first year is a really low rate just to get you in. These
loans will tend to go up and up and up. The rate is calculated each year
by taking the index (let's say the 1-year T-bill in this case, but it
can be anything including, the 6-month LIBOR , COFI, etc.) and adding the
margin, say 2.75. If the one year T-bill is 5.5% today and your margin
is 275 (margins vary by loan program), then your rate would go to
8.25%, but this is limited by the 2% cap per year. In this example,
your rate would only go up to 7.5% in the second year. If rates stayed
the same the year after that, your rate would go to 8.25%, the fully
indexed rate now, but it could go as high as 9.75% if rates went up. This type of loan is good if you will be living in the house 1-2 years. The average rate over two years, even assuming the maximum adjustment,
will usually work out to average less than a 3/1 ARM and sometimes a
2/1 ARM. 5-10% down depending on the loan program. It can get confusing,
can't it? Don't worry, I can help you choose the best program for your
situation - contact me today by phone or email.
- 1-Year Convertible ARM:
This
works the same as a 1-year ARM, but gives you a window of opportunity. Between the 13th and the 60th payment you can
convert to a 30-year fixed rate at a minimal charge, thereby saving you
the cost of refinancing. This program is great for people who are not
sure if they will be selling soon or may end up staying, but will know
within the next five years. This way, if they leave, they have had the
benefit of a real low rate and saved a bunch of money. If they decide
they are staying, then they can covert to a 30-year fixed and not take
the risk with an adjustable loan. 5-10% down depending on the loan
program.
- 2/1 ARM:
This
is an ARM where the rate is fixed for the first 2 years, then changes to
a 1-year ARM. This is a new product and is good for a 1-2 year scenario. Also, for some C
and D credit loans, this is perfect as typically banks want to see
1-2 years of clean credit before giving you an "A" rate on a refinance.
5-10% down depending on the loan program.
- 3/1 ARM:
This
is an ARM where the rate is fixed for the first 3 years, then changes to
a 1-year ARM. This is good if you will be living in the house 3-4 years.
5-10% down depending on the loan program.
- 3/1 Convertible ARM:
This
is the same as the 3/1 ARM, but gives you a window of opportunity between
the 13th and the 60th payment to convert to a
30-year fixed rate at a minimal charge. 5-10% down depending on the loan
program.
- 3/1 ARM with a 2/1 buydown: This
is an ARM where the rate is fixed for the first 3 years, then changes to
a 1-year ARM. But with the buydown, you buydown the rate 2% in the
first year and 1% in the second year. With the 3/1 ARM rate already so low to
begin with, add a 2/1 buydown feature to this program and you can afford
to buy a lot more house. A terrific program if you are stretching to
qualify. 5-10% down depending on the loan program.
- 5/1 ARM:
This
is an ARM where the rate is fixed for the first 5 years, then changes to
a 1-year ARM. This is good if you will be living in the house 3-5 years. 5-10% down depending on the loan program.
- 5/1 Convertible ARM:
This
is the same as the 5/1 ARM but gives you a window of opportunity between
the 13th and the 60th payment to convert to a
30-year fixed rate at a minimal charge.
- 5/1 ARM with a 2/1 buydown:
This
is an ARM where the rate is fixed for the first 5 years, then changes to
a 1 year ARM. With the buydown, you buy down the rate 2% in the first
year and 1% in the second year.
- 5/25 Balloon:
This
is a fixed rate for 5 years, then it adjusts one time and is fixed for
the next 25 years. Some conditions apply to get the next 25 years. The
rate is usually substantially lower than a 5/1 ARM. This loan requires
20% equity. This is good if you will be living in the house 3-5 years.
- 5/25 Balloon with a 2/1 buydown:
This
is a fixed rate for 5 years then it adjusts one time and is fixed for
the next 25 years. With the buydown, you buy down the rate 2% in the
first year and 1% in the second year. Some conditions apply to get the
next 25 years. This loan requires 20% equity.
- 7/1 ARM:
This is an ARM where the rate is fixed for the first 7 years, then
changes to a 1-year ARM. This is good if you will be living in the house
5-7 years. 5-10% down depending on the loan program.
- 7/1 Convertible ARM:
This
is the same as the 7/1 ARM, but gives you a window of opportunity between
the 13th and the 60th payment to convert to a
30-year fixed rate at a minimal charge.
- 7/1 ARM with a 2/1 buydown:
This
is an ARM where the rate is fixed for the first 7 years, then changes to
a 1-year ARM. With the buydown, you buy down the rate 2% in the first
year and 1% in the second year.
- 7/23 Balloon:
This
is a fixed rate for 7 years then it adjusts one time and is fixed for
the next 23 years. Some conditions apply to get the next 23 years. The
rate is usually substantially lower than a 7/1 ARM. This is good if you
will be living in the house 5-7 years. This loan requires 10% equity.
- 7/23 Balloon with a 2/1 buydown:
This
is a fixed rate for 7 years then it adjusts one time and is fixed for
the next 23 years. With the buydown, you buy down the rate 2% in the
first year and 1% in the second year. Some conditions apply to get the
next 23 years. This loan requires 10% equity.
- 10/1 ARM:
This
is an ARM where the rate is fixed for the first 10 years, then changes
to a 1-year ARM. This is good if you will be living in the house 7-10
years. 5-10% down depending on the loan program.
- 10/1 Convertible ARM:
This
is the same as the 10/1 ARM, but gives you a window of opportunity
between the 13th and the 60th payment to convert
to a 30-year fixed rate at a minimal charge.
- 10/1 ARM with a 2/1 buydown:
This
is an ARM where the rate is fixed for the first 10 years, then changes
to a 1-year ARM. With the buydown, you buy down the rate 2% in the
first year and 1% in the second year.
- Pre-payment penalty:
Some
of the above loans may feature the option of a pre-payment penalty. Some
investors take up to three years to break even on a loan. During the
refinance surge, people were refinancing so often that approximately
.25% of the rate on most loans is due to this early turnover.. Therefore, on some loans, you may actually get a .25% better rate
if you promise not to pay off more than 20% of the outstanding balance
for the first 3 years. After that, you may pay as much as you want
without penalty. The penalty is 2% of the amount over 20% you prepay the
loan, i.e., a $200,000 loan may be repaid $40,000 in each year for the
first 3 years without penalty. But, if you paid down $41,000, the
penalty would be 2% of $1,000, or $20.
- One closing construction and permanent loans: A
6-month land acquisition and construction loan providing funds to build
your own home. The construction loan then rolls into a 30-year loan at
no additional charge.
- Home equity & fixed rate second mortgage to 125%:
Rates
vary depending on credit, income, etc. Great for debt consolidation,
home improvements, or any time you need to take equity out of your home for any
reason. Same tax deductibility as any other type of mortgage. Lines of
credit are reusable.
- Bridge loans:
Used
in conjunction with selling your old home and buying a new one. Allows
you to pull the equity out of your existing home before it sells.
- 97% community home buyer:
3%
down. Income must not exceed certain regional income limits. Qualifying
ratios expanded to 33/38. Clean credit a must.
- Land purchase loans:
Terms
are a 5-year balloon with a 25-year amortization. Must be a buildable lot.
20% equity required.
- 75% "No Job Required" loans: Rates
vary depending on size of down payment and credit. All credit types
considered. Restricted to certain geographical areas. No questions asked
about your employment or where the down payment money came from. Foreign
nationals okay. Cash business owners okay.
- Plus many more!
Just
because you don't see it here, it doesn't mean we don't have it or it
doesn't exist. There is not enough room on the entire Internet to
describe all the possible loan programs and borrower profiles available. Contact
me now and I can help you choose the best program for
your situation.
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