Fixed Rate Mortgage

This product’s interest rate stays the same throughout the life of the loan.  Each month’s payment is equal to the interest on the principal and a small portion of the principal.  The Advantage of this product is that the principal and interest payments remain the same each month for the life of the loan.

Adjustable Rate Mortgage

The interest rate on an adjustable rate mortgage can vary.  The lender can let the rate adjust monthly, quarterly,  or annually depending on the type of loan.  The advantage of this mortgage product is that the rate and monthly payments are usually lower than a fixed rate mortgage.  The disadvantage is that the rate can go up if the index rate increases (Treasury Bill, WSJ Prime Rate, etc.), thus suddenly increasing your monthly payment.

Interest Only Loan
(Interest Only Loan Payments WILL NOT reduce the principal balance)

In an interest-only loan or interest-only mortgage, the borrower only pays interest each month.  This makes the monthly payment lower than a fully amortizing mortgage, which would apply the monthly payment between principal and interest.

Reverse Mortgage
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A reverse mortgage is a loan for senior homeowners that use a portion of the home’s equity as collateral.  Generally it does not have to be repaid until the last surviving homeowner permanently  moves out of the property or passes away.  At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance.    All remaining equity is then inherited by the estate/heirs.  The estate/heir is not personally liable if the home sells for less than the balance of the reverse mortgage.  Other advantages are:  no minimum credit score, loan proceeds are not taxable, and no income requirements.  This is the perfect solution for seniors 62 or older who want to turn the value of their home into cash with no monthly payments.

Government-Backed Loans

A government-backed loan is a loan subsidized by the government.  This makes it easier for the lenders to offer potential borrowers lower interest rates and high loan to values.  Its primary aim is to make home ownership affordable to lower income households and first-time buyers.

Residential USDA Financing
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Living within rural areas is not just for farmers; a great home in a great neighborhood is waiting for you today.  If you live in a qualifying area, a USDA mortgage loan might be right for you.  Our Mortgage Bankers can help you determine your eligibility.  This financing is for owner occupied homes, with no prepayment penalties.  The mortgage rates are competitive and USDA loans are available in all rural areas of the country.  You can borrow up to 100% loan to value plus the agency guarantee fee, and receive up to an additional $10,000 in repairs.

VA Mortgage
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A Veterans Administration loan is designed to offer long-term financing to eligible American veterans.  With no monthly mortgage insurance, low, fixed interest rates, and a loan to value up to 100%;  it is the perfect way to say “thank you” for your military service.  A VA Mortgage can be used to purchase or refinance your home, with no down payment and up to 6% seller paid closing costs.  Other advantages to this loan product are the no prepayment penalties and the VA funding fee (if applicable) can be financed into the loan.  The surviving spouses qualify for this program as well.

HomePath Mortgage
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HomePath provides special financing terms exclusively for Fannie Mae real estate owned properties and can deliver distinct advantages when purchasing in any market.  HomePath Mortgages are available for owner-occupied, second homes, investment properties, 1 to 4 unit properties, as well as condos.   This mortgage does not require an appraisal or mortgage insurance.  Also, it requires a very low down payment as the loan to value can be up to  97%, and allows for a 6% sales concession.

FHA 203 (k) Rehab Financing
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The 203k program is a HUD sponsored purchase-renovation program in which one, all-inclusive loan, serves to both acquire a real estate property and restore or upgrade the property.  This program will finance repairs/renovations into the loan amount with all work done after settlement.  Financing can be up to 110% of appraised value after renovations with a very low down payment required.  Use the FHA 203k to purchase, repair, and renovate the property or refinance the existing indebtedness.  Eligible improvements include, structural alterations, additions, decking, heating, air-conditioning, roofing, energy conservation improvements, and major landscaping work.