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What types of loans are
available to me?
There are many
different types of loans offered to consumers. Some of the most
popular loans are the Conventional Fixed Rate, Adjustable Rate and the VA Loans (Veterans Affairs). Because VA loans are guaranteed by the government, they
generally feature lower interest rates and mortgage fees than
other loans. Details about the major types of loans that are
available through Nancy are listed below.
Call Nancy
Rimel with your questions today!
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Conventional Loans - Loans Under $417,000.00 |
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Conventional loans are typically for borrowers
purchasing or refinancing properties that are single
family dwellings up to a residential fourplex.
Conventional loans can be fixed or adjustable
products. |
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1) Fixed Rate Loans |
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Fixed
Rate Loans are typically amortized over 40, 30, 20 or 15
years. A 30 year rate is a bit higher than shorter
term amortizations. Most borrowers choose a 30 year
loan because the longer term equals a lower monthly
payment.
Fixed
rate loans can also be on shorter terms. For
instance, you may opt for a 30 year amortization
with a balloon payment in 7 years. The interest rate
is lower than the traditional 30 year loan.
There are many Fixed Rate products available. Call
Nancy for more information. |
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2) Adjustable Rate Loans |
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There
are many "ARM" loans available. The most popular are
a hybrid arm-a 30 year loan that is fixed for a term
then converts to a one year adjustable loan.
For
instance, a 5/1 is fixed for 5 years then converts
to a one year adjustable for the next 25 years.
Hybrids can be fixed for 1, 3, 5, 7 or 10 years and
then convert for the remaining loan term. Since most
American's move or refinance within 3 to 5 years of
purchase, these loans are quite popular. Rates
typically run at least .50% lower than a fixed
product. With a lower rate, borrower's can qualify
for a higher loan amount.
Here
is an example; 5/1 ARM @4.25 for 5 years. Principle
and interest payment for $150.000 is $737.90. A 30
year fixed loan @5.875 principle and interest
payment is $887.31...BIG DIFFERENCE! |
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Non
Conventional Loans (over $417,000) |
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Loans
over $417,000 are referred to as "Jumbo Loans".
Jumbo Loans have a higher interest rate than
conventional loans because the lenders perceive
their risk as higher. The Jumbo rates run about .375
to .50 percent higher than conventional rates. The
same types of loans are available in Jumbo
categories as are in conventional categories. |
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Government |
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Veteran Administration Loans |
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A VA
(Veterans Affairs) loan carries many advantages for
the qualifying veteran, the unmarried widow of a
veteran or an active-duty serviceman. The maximum
loan amount is $417,000 as of Jan 1, 2006. You may
obtain 100% financing and also roll the VA Funding
fee into the loan amount. Since the VA borrower is
only allowed to pay some of the closing cost, this
type of loan is perfect for vets with little or no
down payment. This loan exist for the benefit of
that Veterans, so if a vet has some credit problems
, often they will be able to obtain financing that
otherwise they would not qualify for through
traditional lenders.
Nancy Rimel can assist you with more
information. |
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Non-Conforming Loans |
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Credit
Challenged Mortgage Loans |
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Although there are limits, Nancy often says that she
can find just about anyone a loan. If you have a
bankruptcy, foreclosure or credit card and mortgage
lates, it is imperative to know the facts. Working
with a mortgage broker like Nancy Rimel who is
dedicated to obtaining financing for everyone at the
best rate possible, will give you the tools you need
to buy or refinance a home. Remember, do not
run your credit numerous times, this lowers your
credit score and may damage your ability to obtain
financing. Call Nancy to identify your mortgage
options. |
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New &
Interesting Loans... |
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From
time to time we are able to offer our clients
Special or Interesting Loans which may be time
sensitive or available for a limited time..... |
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Interest
Only loans allow the borrower to pay substantially less
each month (interest only pmts) and qualify to borrow more!
Perfect for first time buyers. Call Nancy to find
out more about these programs. |
Nancy will
always give you a written Good Faith Estimate and Truth In
Lending disclosure spelling out the the typical closing
cost, prepaid expenses, financing type and projected loan
payment for any type of loan of interest to you.
You may
fill out an
Information Form
or call 1-253-370-1540 to get additional advice on which loan is
the best for you.
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