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Mortgage Products
Buying your first home is a big step. Fortunately, we can help make the process of securing a mortgage as quick and hassle free as possible with a variety of loan options and the support you need to make sound financial choices.
Fixed-rate mortgage
The fixed-rate mortgage has long been the most popular home financing product. With an interest rate that never changes, it provides stable, predictable monthly payments throughout the life of the loan. Your monthly payments will not decrease if market rates go down, but you will have the comfort of knowing you are protected if rates go up.
If you plan to stay in your home for more than seven years, and prefer the security of stable payments to being at the mercy of the market, a fixed-rate mortgage may be the best option for you.
Adjustable-rate mortgage
An adjustable-rate mortgage has a low starting rate, so your initial monthly payments on an ARM will be lower than on a fixed-rate loan for the same amount. And because the amount you can borrow is based partly on how much you can pay each month. Your maximum loan amount will probably be higher with an ARM.
Adjustable Rate Mortgage
An ARM works as follow:
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The interest rate starts out lower than the rate on a fixed-rate mortgage, then adjusts regularly based on market indicators.
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The starting rate stays fixed for between three months and ten years, depending on the ARM product.
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Most ARMs adjust annually, but some adjust on a semi-annual or monthly basis.
- Individual adjustments are capped at a certain amount, and the rate can never exceed the lifetime cap.
Keep in mind that the interest rate and monthly payments can increase during the loan term. You may get the most value from an ARM if you plan to move before the end of the fixed-rate period, or if you are buying at a time when rates are relatively high.
Home Equity Financing
As you repay your mortgage, you will gradually build up equity in your home. You can borrow against that equity when you need cash, using either a loan or a line of credit.
- Home equity loan give you the cash you need as a single upfront payment, which you can repay at a fixed rate. If you know exactly how much you need to borrow, a home equity loan may be the best option.
- Home equity credit lines give you a revolving source of cash that you can draw from as you need to, up to a maximum amount. The line carreis a variable rate with an interest-only option, and you pay interest only on what you actually use not the total amount of the credit line.
Reverse Mortgage
A reverse mortgage is simply a home loan for senior homeowners. With a Reverse Mortgage, the owner retains complete ownership and control of your home as with any other home loan.
With the Reverse Mortgage, the lender sends cash to you according to the plan you select. You make no monthly mortgage payments for as long as you live in your home. The more cash you receive, the greater the loan balance owed against the property.
With the Reverse Mortgage there is no personal liability to you or your heirs. The lender can only look to the property for repayment.
Repayment is due after all homeowners permanently vacate the home. That repayment comes out of the equity or by any other means chosen – your heirs could refinance the home, or write a check, or sell the property. Typically, the property is sold and the loan is repaid – any remaining equity belongs to you or your heirs.
In addition to our standard loan programs, we have a variety of special loan programs that you may be able to take advantage of:
- Purchase a home with no money down.
- Piggy-Back loans: 80-20, 80-10-10, or 80-15-5 to avoid paying PMI payments on your loan.
- Debt consokidation programs.
- Home Improvement loans.
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