5/1 ARM An ARM is an Adjustable Rate Mortgage. ARMs have different advantages and disadvantages when compared to fixed rate mortgages. Unlike their counterparts—the fixed rate mortgage—that have an interest rate and payment that remain the same for the duration of the mortgage, the interest rate and payment of an ARM loan can adjust. By design, the ARM typically has a fixed period for the first few years—whether that is 3 years, 5 years, 7 years, or 10 years. After that initial fixed period, the ARM...FHA Loans An FHA loan is a government insured mortgage which allows refinance flexibility for current borrowers who have limited equity and would-be homeowners the ability to purchase the home of their dreams even if they may have limited funds for a down payment.
These loans are funded by various lenders but are insured by the Federal Housing Administration in the case of a default. This way, the lender that originally funded the loan is able to recoup some of the funds. Due to this...30-Year Fixed The 30-Year fixed mortgage is quite possibly the most prevalent type of mortgage loan in the United States. It has several elements that make it easy to understand and quite possibly the most comfortable choice for homeowners.
For one, it is a fixed rate mortgage. This type of mortgage is one where the rate on the note remains the same throughout the life of the loan, as opposed to loans where the interest rate (and thus payment) may adjust or "float" based on the designated index (e.g....Interest Only Loans Interest Only loans provide a lower cost mortgage, since you only are obligated to pay interest each month. So the plus side is that you have a lower payment. But the down side is that principal reduction of your mortgage does not occur automatically each month, unless you pay an extra amount on top of the required mortgage payment.
While Interest Only loans are designed to give a homeowner a lower payment, they are not designed to stretch affordability or allow a buyer to buy a...JUMBO Loans JUMBO loans are our specialty. Most lenders shy away from them. We, however, welcome JUMBO loans with open arms. Not only do we specialize in jumbo loans, we will provide you with some of the most competitive terms, rates, and programs available in the market for JUMBO loans .
By definition, JUMBO loans are those that exceed Fannie Mae and Freddie Mac's conforming loan limits. Each state and county has its own definition of a conforming loan limit. For...