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ADJUSTABLE RATE MORTGAGES: A mortgage in which the interest rate is adjusted
periodically based on an index. Also called a variable rate mortgage.
For an adjustable rate mortgage, the time between changes in the interest rate
charged. The most common adjustment intervals are one,three or five years.
BALLOON LOANS: A loan amortized for 30 years with the interest ratefixed
for a portion of that time(usually 5 or 7 years) at the end of this period
the interest will either be reset or loan paid in full.
CONVENTIONAL FIXED RATE: Mortgages for 15, 20, 25, or 30 years. A
mortgage loan for $252,700 or lower meeting secondary market guidelines where
the interest rate does not change for the life of the loan.
JUMBO LOANS: A loan above $252,700. These limits are set by the Federal National
Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo
loans cannot be funded by these two agencies, they usually carry a higher interest rate.
STATED INCOME LOANS: A Loan at a slightly higher interest rate where income is not
verified. Must have 6 months payment in reserve. Ideal for self employed borrowers.
SUB PRIME LOANS: Loans at a higher interest rate when credit does not
qualify for a Conventional loan.
FLEX 97 LOAN: Only 3% down payment required and gift money isacceptable.
80/10 LOAN: 80% first Mortgage and 10% Second Mortgage therefore
avoiding Private Mortgage Insurance. Requires very good credit.
80/15 Loan: 80% First Mortgage 15% Second Mortgage therefore avoiding
PMI. Requires excellent credit.
100% Loan: All that is required
is good credit and reasonable debt to income ratios. We can finance
the entire purchase price and you can ask the seller to pay closing
cost. You will only have to pay $500.00 at closing if the seller
agrees to pay part of the closing cost and you qualify for the
program.
103% Loan Program: With this program you can
include all of the closing cost in the loan. The rate will be higher
on the 103% and
100% loans and credit must be very good. |
