loan programs

Fixed Rate Mortgages This is the most common type of mortgage program. Your monthly payments never change because the interest rate remains fixed for the life of the loan. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable. Fixed-rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. This loan is probably right for you if you don't plan to move or refinance for at least 10 years and you expect interest rates to increase over this period, or you just feel uncomfortable making an interest-rate bet at this time. This loan may also be right for you if you don't expect your income to increase significantly over the next several years.

Adjustable Rate Mortgages These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, which may allow you to qualify for a more expensive home. The interest rate may change at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up. On the positive side, if rates go down,your mortgage payment will drop also. Adjustable rate mortgages are generally available for 10 years, 7 years, 5 years, 3 years and 1 year. This loan is right for you if you need to qualify for the largest loan possible using your current income and you are confident that your income will increase significantly in the short term to cover any anticipated increases in rates over the next few years. Although this loan comes with adjustment rate caps (usually 2% limit per adjustment and 6% over the lifetime of your loan),you should assume that your first adjustment will generally result in an increase in your interest rate.

GPM Graduated Payment Mortgage The GPM is an alternative to the conventional adjustable rate mortgage. Unlike an ARM, GPMs have a fixed note rate and payment schedule. With a GPM the payments are usually fixed for one year at a time. Each year for five years the payments graduate at. at a predetermined rate. The lower qualifying rate of the GPM can help borrowers qualify for larger loans, thi can be a good idea in an area where Real Estate is appreciating. In slow markets or if a borrower needs to move during the scheduled negative amortization period it could be an unpleasant and costly situation.

Balloon Loans A balloon loan is a prudent choice for borrowers who prefer the stability of a fixed-rate loan, but plan on moving in a few years. Monthly payments stay the same for the balloon period. At the end of the balloon period, the remaining loan balance is due and payable at this time, most plans offer a conversion option when certain conditions are met.

FHA Loans (Federal Housing Administration) Government assisted loans may ease first-time buying with low down payments, easy qualifying rules and acceptance of closing costs from a gift.

VA Loans (Veterans Administration) For active, retired or reserve military, these Government assisted loan programs offer low rates and low or no money down.