loan options

30-Year Fixed

The traditional 30-year fixedrate mortgage has a fixed interest rate and monthly payments that never change. This is constant over the entire 30 year term of the loan. A 30-year fixedrate loan may be a good mortgage option if you plan on staying in your home for a long duration and do not intend on moving down the line.

20-Year Fixed

Similar to the 30-year fixed mortgage, the 20-year fixedrate mortgage has a fixed interest rate and monthly payments that never change. This is constant over the entire 20 year term of the loan. A 20-year fixedrate loan may be a good mortgage option if you plan on staying in your home for a long duration and do not intend on moving down the line, yet want to pay the mortgage down faster than a 30 year term. This allows you to save money on less interest paid on the mortgage through a higher payment, which ultimately means shaving 10 years of payments (and interest) when compared to a 30-year fixed mortgage.

15-Year Fixed

A 15-year fixed mortgage is fully amortized over a 15 year period and features constant monthly payments, similar to both a 30-year fixed and a 20-year fixed mortgage. It offers all the advantages of the 30-year loan, plus a lower interest rate usually. The biggest advantage is that you’ll own your home twice as fast. The disadvantage is that with a 15-year mortgage, you commit to a higher monthly payment since the term is cut in half when compared to a 30-year fixed. Many borrowers who prefer the 15-year fixed mortgage appreciate saving substantial interest over a reduced.

The 15-year fixed rate mortgage has a fixed interest rate and monthly payments that never change. The interest is almost always lower than a 30-year fixed and a 20-year fixed, which means much less interest paid over the term but also per payment. This is constant over the entire 15 year term of the loan. A 15-year fixed rate loan may be a good mortgage option if you plan on staying in your home forever, want to accelerate paying it off, and can manage higher monthly payments.

Adjustable Rate Mortgage

An Adjustable Rate Mortgage, or an ARM, is a mortgage that has an interest that can and will change over the term of the loan. Unlike fixed-rate mortgages that have an interest rate that remains the same for the life of the loan, the interest rate on an ARM will change periodically based on the margin, index, and set-up of the loan term. The initial interest rate of an ARM is often lower than that of a fixed-rate mortgage, which is advantageous in most cases.

Consequently, and as a result, an ARM maybe a good option to consider if you plan to own your home for only a few years, if you expect to refinance in a few years, or if you expect an increase in future earnings. Also, another item to consider is whether the prevailing interest rate for a fixed mortgage is too high or out of reach when compared to the interest rate of an ARM.

Jumbo Loan

A jumbo mortgage is a loan that exceeds the conforming loan limits as set by Fannie Mae and Freddie Mac. As of 2021, the limit is $548,250 for most of the US, outside of Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where the limit is $822,373. Jumbo loans are just that: they are loans designed for higher balance mortgages and higher priced homes.

Rates may be a bit higher on jumbo loans because lenders generally have a higher risk. But so long as the loan is below the conforming limit set by Fannie Mae and Freddie Mac, they will be competitive and very close to lower balance loans.

FHA Loan

An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA) and designed to reduce the risk of loss to the lender while also providing homeownership opportunities for everyone. In summary, the federal government insures loans for FHAapproved lenders who fund FHA loans. This reduces the overall risk of loss if a borrower defaults on their FHA mortgage payments. In short, the lender knows that the government will provide a certain allocation of payment for the mortgage balance should a default occur.

The FHA mortgage program was created in response to snowball of defaults and subsequent foreclosures that occurred in the 1930s during the time of the Great Depression. And FHA loans are generally available to homeowners with credit scores of 580 or higher, and with down payments as low as 3.5% which makes these loans accessible to almost all borrowers across the spectrum of credit and equity.

The FHA program provides mortgage lenders with adequate insurance and certainty to make the loans to borrowers, which ultimately helps stimulate the housing market by making loans accessible and affordable for everyone across the spectrum of eligibility.

VA Loan

A Veterans Affairs loan, or commonly known as a VA loan, is a mortgage loan funded in the United States by lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). The loan may be issued and funded by qualified lenders yet, similar to the FHA, will be insured by the VA for any potential losses incurred in the event of a default. The VA mortgage was designed with veterans in mind – those who put their lives, freedoms, and liberties on the line to serve this country and all those who live in this country. It was designed to offer long-term financing to eligible American veterans or their surviving spouses so long as the spouse does not re-marry.

VA loans are backed by the government, specifically by the U.S. Department of Veterans Affairs. They are a very affordable mortgage option for qualified veterans, their spouses, and come with the option of a fixed or adjustable rate mortgage. These often require no down payment and have lower closing costs, which can help keep your savings secure. Most costs can be rolled into the loan.

If you’re a military veteran or still in active service, you may qualify for a U.S. Department of Veterans Affairs (VA) loan.

Interest Only Mortgage

The interest only mortgage is a non-traditional mortgage. But many homeowners find benefits in it. Primarily, it serves the homeowner who may not intend on living in the home for long term. Interest only mortgages only require interest to be paid per payment, when compared to principal-and-interest mortgages that require both principal and interest to be paid. Thus, interest only mortgages have lower payments since the borrower is only required to pay interest.

Home Equity Loan

A home equity loan is either a fixed or variable (adjustable rate) mortgage that is in second position to your first and primary mortgage. The home equity loan can serve as either an open loan with a home equity line of credit (HELOC) you can draw from that functions similar to a credit card and that you can use as you need. Or, simply it can be second mortgage that pays you a lump sum amount in the form of home equity, which then becomes a loan you would repay on a repayment schedule.

Debt Consolidation

A debt consolidation mortgage can come in the form of a fixed-rate mortgage or an adjustable rate mortgage. The concept of a debt consolidation mortgage is to simply consolidate your monthly debts into either a new, first mortgage or a second mortgage or a home equity mortgage (HELOC). The end result you will be replacing your credit card debt and other debt that has been consolidated into one new mortgage loan, which is often at a lower interest rate and APR. Equally as important, there tax incentives with this since the interest can be tax deductible (consult your tax professional) when compared to credit card payments which generally are not tax deductible.

Since many Americans have multiple credit cards and debts, the solution is a debt consolidation mortgage loan. We can help you consolidate your debts and lower your payments by eliminating the monthly payments associated with your credit cards and debts.
Doing this will also be the first step in improving your credit scores as anytime you utilize more than fifty percent of your available credit card balances, you are creating a reduction in your scores.

If you own a home, you can get a debt consolidation home equity loan. With a debt consolidation home loan you are able to consolidate each of your high interest credit cards, as well as your consumer loans, into one inexpensive and affordable monthly payment with low interest which may have advantageous tax incentives as well.

Non-QM Loan