Loan Programs
We offer loan programs for all of the following types of financial needs.
- 1st Mortgages
- 2nd Mortgages
- Home Equity
- Refinances
- Construction
- Home Improvement
| Program Strengths: | Long Term Rate Security | ||||
| Program Drawbacks: | Often the highest rate program. May be more rate security than the owner will ever need. | ||||
| Recommendations: | A good program if the owner does not plan to move or refinance for more than 10 years. A good choice if rates are historically very low. Points make sense to purchase if borrower plans to be in the property for at least 4½ years. | ||||
| Program Strengths: | Long Term Rate Security | ||||
| Program Drawbacks: | Often the highest rate program. May be more rate security than the owner will ever need. | ||||
| Recommendations: | A good program if the owner does not plan to move or refinance for more than 10 years. A good choice if rates are historically very low. Points make sense to purchase if borrower plans to be in the property for at least 4½ years. | ||||
| Program Strengths: | Rate security for 15 years. Rates often ½% better than the 30 year. More of your payment goes to principal and less to interest. Build equity at twice the pace of a 30 year loan without making double the payment. | ||||
| Program Drawbacks: | Borrower will qualify for smaller loan amount than for 30 year amortized programs. | ||||
| Recommendations: | If building equity is your goal and you would rather save money on interest than buy a more expensive home, the 15 year is the program for you. | ||||
| Program Strengths: | Long Term Rate Security | ||||
| Program Drawbacks: | Rates are higher than even the 30 year fixed conforming. Very expensive mortgage compared to Jumbo ARM's. | ||||
| Recommendations: | A good program for the security conscious and those with fears of rising rates, but not usually a good way to save money. | ||||
| Program Strengths: | Lowest rate for first year out of available programs. | ||||
| Program Drawbacks: | Risky for long term considering rate can increase as much as 6% | ||||
| Recommendations: | Great program for those who are going to be in a home for three years or less, those who plan on making more money over the next few years and those looking to refinance within the next three years. Not a good program if you think rates are going to increase over the next few years. | ||||
| Program Strengths: | Lowest qualifying rate of all loans allows borrower to "qualify" for the largest loan. A good combination of fixed rate security and low starting rate. | ||||
| Program Drawbacks: | Three years fixed may not be enough to give one "peace of mind". | ||||
| Recommendations: | Great program for Jumbo loans and those who plan on being in a home for 3 to 5 years. Good program for anyone who believes that rates will be lower at some point in the next five years. | ||||
| Program Strengths: | The five year lock in period offers as much security as most borrowers use (The national average life span of a loan is 4.7 years) and at a noticeable savings over the 30 year fixed. The 5/1 usually has a lower par rate( a rate with 0 points) than the 5/25 Balloon and a better rate after the 5th year of the loan. | ||||
| Program Drawbacks: | Five years fixed may not be enough to give one "peace of mind". | ||||
| Recommendations: | Great program for Jumbo loans and those who plan on being in a home for 3 to 5 years. Good program for anyone who believes that rates will be lower at some point in the next five years. | ||||
| Program Strengths: | At times has a lower rate than the 30 Year fixed. | ||||
| Program Drawbacks: | The spread between the 30 year fixed and 7/1ARM is usually not that dramatic. | ||||
| Recommendations: | If you plan on being in your loan for seven years or less, want a low rate, and are insistent on an ARM. | ||||
| Program Strengths: | Low rate with 5 year fixed rate security. Great program for borrower planning on paying off loan or relocating in five years or less. Program can have extremely low rates with modest point buy-down. | ||||
| Program Drawbacks: | Five years fixed may not be enough to give one "peace of mind". | ||||
| Recommendations: | Great program for borrowers (Jumbo especially) who want added security of a longer fixed rate term but still want to save money over a 30 year period. | ||||
| Program Strengths: | Fixed rate security for seven years is usually more than most borrowers need, at a rate better than the 30 year fixed. | ||||
| Program Drawbacks: | The adjustment after the seventh year usually yields a high rate. | ||||
| Recommendations: | A good mix of security and low rate for those planning on being in a loan for seven years or less. | ||||