A fixed-rate home loan is a loan with an interest rate that never changes. A popular term (length) for fixed-rate loans is 30 years, but we offer custom term options, as well. Fixed-rate loans with shorter terms tend to require higher monthly payments, but less total interest paid over the life of the loan.
You lock in the security of a consistent rate, which is ideal if you plan to stay in the same home for a long time. And if rates suddenly go up, you’ll keep the rate you had the day you closed on your loan.
With an adjustable-rate mortgage (ARM), your rate may change based on national rate indexes (within certain limits). Adjustable-rate home loans have an initial fixed rate period after which the rate will adjust at stated periods. For example, a “5/1 ARM” is a loan with a fixed rate for 5 years, then one yearly adjustment for the rest of the loan term. Each adjustment has annual and lifetime limits.
If you’re planning on staying in your home for a shorter period of time, the initial low fixed rate of a 3/1, 5/1 or 10/1 ARM can keep your monthly payments low.
A conventional loan isn’t insured by the federal government. It typically requires a minimum of 5% down and has both fixed and adjustable rate options. Popular conventional loan terms are 15- and 30-year.
Conventional loans tend to involve less paperwork than government-backed loans. If you can make a down payment of 20% or more on a conventional loan, you won’t have to carry mortgage insurance. Also, you may not be required to establish an escrow account.
Government-backed FHA Loans offer competitive rates, flexible credit requirements, and down payments as low as 3.5%. An FHA Loan is a great option for people who may not qualify for a conventional loan.
FHA Streamline Loans are a unique refinancing option for borrowers who already have an FHA loan. This program makes refinancing easy. There is typically no need for documentation that is usually required for a loan, including income and employment verification, bank account and credit score verification, and an appraisal of the home.
Compared to many other loan types, the process of applying for an FHA Streamline refinancing is quicker and the document requirements are simpler. And even if your equity is currently negative, certain types of FHA Streamline Loans could still lower your payment.
If you are a veteran, active duty service member, or surviving spouse of a veteran, you may be eligible for a well-deserved benefit: a VA Loan. Purchasing a home? 90% of VA purchase loans are made with no down payment. Call us today to see if you are eligible.
Compared to many other loan types, VA Loans offer low rates and manageable down payments (that can actually be as low as $0 for qualifying borrowers!) They also don’t require monthly mortgage insurance payments.
If you have a VA Loan, an IRRRL is a great way to lower your monthly payment. However, you can only use it to refinance to a VA Loan from a VA Loan.
No credit underwriting package is required by the VA when applying, and you may not need to pay any money out of pocket or get a property appraisal. Unless you’re refinancing from a VA ARM loan to a fixed rate, you can expect your interest rate to drop with a successful VA IRRRL application.
Jumbos help you buy or refinance higher-valued properties, while still offering fixed and adjustable options.
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