30 and 15 year Fixed Loan Programs.

Fixed rate loans provide the least risk over the long term. If you are planning to keep your home for a period of time that is far beyond your horizon of predictability; a 30 year fixed rate loan is for you. Interest rates remain unchanged for the entire duration. Because the term is fixed for 30 years the rate that a lender will charge is slightly higher when compared to shorter terms. The trade off is security but at a higher price. How long you intend to live in the property plays an important role in deciding what loan you should take.

Fixed rate loans with shorter terms are also available. The advantage is that you pay off your loan sooner and the interest rate is lower then the 30-year program. The drawback is that your payments are higher because you are prepaying more of your outstanding balance each month. Our knowledgeable staff will explain the various options that are available to you!

Adjustable Rate Loan

If you are planning to stay in your existing or new home for a specified period, adjustable rate financing may be your best choice. 1st time homebuyers who are likely to upgrade to a larger home should consider this option closely. Adjustable rate loans are typically fixed for a period of time and then after that period the interest rate will adjust according to a previously specified index. The rate when adjusted is determined by the index plus a margin. Adjustable rates also have maximum caps which can be adjusted upwards or downwards. The initial fixed term on an adjustable loan can be for as little as a month and as long as 10 years. It is important to determine how long you intend on being in your home to allow for good choice on the type of adjustable rate program that you would consider. The key components for an adjustable rate loan are: The start rate, the index being used to establish future rates, margin ( the percentage over the index being used to set the rate at the time of adjustment) and adjustment caps (annual and lifetime maximum limits to adjust the rate). Any one of our loan officers will be happy to explain in detail these items and how they will effect your loan request.

No Income Verification Loans

Are you self-employed? Have you made a recent career change in less then a year? Do you want to maintain privacy regarding your tax returns? These along with many others, are examples why many choose a no-income loan option. No-Income programs typically require that a borrower has more equity in the transaction. Generally speaking a lender offering no-income will limit the allowable loan amounts to 85% of the purchase price or of the appraised value if the loan request is to refinance. Lenders will also charge a slightly higher interest rates for these programs. Lenders perceive these transactions as being riskier since they have not substantiated the earning power of the borrower. If you are looking for less documentation and are willing to pay a little more in interest, a no-income program may be your best choice. Contact your loan officer to determine if you qualify.

No-Doc Loans

A no doc program provides a borrower with the opportunity to secure a mortgage without disclosing any asset or income information. The rates are more advanced due to the increase in the loan risk that the lender is taking. Less information, means more risk. More risk is translated into higher rates for the borrower. A no-doc loan concentrates on the borrowers credit and the value ofthe property. These loans will typically require equity of 15% or more and a borrower who has excellent credit. Borrowers who are between jobs, retired or have recently come into money due to inheritance and do not fit the standard mold of lending will consider no-doc as a practical option to achieve their needs. Feel free and explore no-doc lending options with one of our loan officers.

Non-Owner Occupied Investor Programs

Investment properties are generally defined as a property that is being rented. 2nd (vacation) homes are not considered to be investment properties. An investment property cannot consist of more than four rental units. These mortgages require complete documentation about the borrower and the property. Typical down-payment requirements are as much as 15% of the purchase price. Interest rates can be fixed for as long as 15 to 30 years. The rates are generally pegged about 1/4 percent higher than normal owner occupied rates.

Equity Lines of Credit

If you own a home and want to do some various home improvements, a home equity loan may be the ideal choice. Home equity loans are used for a variety of needs including debt consolidation, medical, vacation property purchases and almost anything else one might consider. A HELOC is a second mortgage that provide you with funds as needed without disturbing your existing 1st mortgage. Home equity lines of credit (HELOCS) operate differently then most mortgage products. A HELOC is an actual line of credit. Interest is only charged when funds have been drawn across the account. Funds can be paid back, only to be available on demand when needed later. HELOC interest rates are pegged to prime plus a margin of zero to four or more percent. Allowable loan amounts differ from program to program. One general rule of thumb is 100% of the property value minus the existing 1st mortgage. Some HELOC programs can access all remaining equity in a home. Make sure you consult your accountant about the various tax advantages that may be available to you prior to securing your loan.