Loan Types

Which Loan is for me?

This is the single most popular question we hear in this industry. While there are several loan types that we specialize in almost all will fall into three distinct categories.

Fixed-Rate Mortgages: With this type of mortgage your monthly payments for interest and principal never change. 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.

Adjustable-Rate Mortgages (ARMS): These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and could allow you to buy a more expensive home. However, the interest rate changes at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up, too. However, if rates go down, your mortgage payment will drop also.

Fixed Adjustable Rate Mortgages: Whilst it seems that this last loan is a contradiction in terms; these programs refer to a loan that is fixed for a pre-determined period of time and then adjusts. These mortgages are perfect for those slightly more cautious Borrowers that aren't sure whether or not they will remain in their homes for the next 5 years or less. This affords those borrowers the lower rate without the worry of an adjusting index.