|Fixed Rate Mortgage
||The Interest rate remains fixed for the stated period of the loan., 30,25,20,15 and 10 year terms are available.
||Your monthly principal and interest payment will never change. Budgeting is easier for the long term.
|Adjustable Rate Mortgage (ARM)
||The interest rate is generally fixed for the first 3,5,7, or 10 years. After that time, the rate becomes variable for the remaining term of the loan, and adjusts every year thereafter based on the movement of the index. You payment will change based on the change in your rate.
||ARM’s generally offer lower start rates/payments when compared to a fixed rate loan. Your rate can increase, but also can decrease as the index rises and falls. If your planning on owning a home for a short period, this might be a good option for you.
||Jumbo mortgages are generally mortgages that are larger that the current conforming loan limit. The conforming loan limit is currently at $510,400.
||Jumbo Mortgage come in both fixed rate and ARM products. Generally, at least 20%down payment is needed for a purchase
||FHA loans are fixed rate and ARMs that are insured by the government.
||FHA loans have lower down payment requirements and are more flexible with less than perfect credit.
||This program is designed for US military veterans.
||This program was put in place to help veterans buy homes with little to no money down. Refinancing (IRRL) and cash-out refi’s are available. VA loans do not have PMI/MI on any of their loans. There is a VA funding fee