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Florida Mortgage Lender with the best rates
available to everyone. No credit situation will be turned
down.
Mortgages, Home Loans, Home Equity Products, and all
your refinancing needs will be met. Our Mortgage
Experts are available to help you now!
Free APPROVALS and Pre-Qualification with Any credit
score. Get pre-approved for your mortgage, rather than just
pre-qualified. It strengthens your bargaining position with sellers and their
real estate agents.
Mortgage Products
Have you noticed that lately people are becoming very concerned about the type
of home financing product they choose?
FIXED OR ADJUSTABLE RATE MORTGAGES
6 MONTH ARM
5 YEARS
INTEREST ONLY MORTGAGES VS 30 YEAR FIXED MORTGAGES, TREASURY OR LIBOR?
With so many choices out there, it can make the decision very difficult. That's
why you need the right lender to help make that decision based on your
personality. The truth is there is no wrong or right answer about any of the
many other products out there, especially when it concerns your biggest
investment and most valued asset...YOUR HOME.
Your personal home mortgage financing decision has to be based
on what is right for your family needs, financial situation, the amount of
money you want to invest in your home, and how long you intend to live in your
home. Quite simply...'"YOUR LOAN PERSONALITY"
So with that in mind we would like to assist you in understanding the most
popular types of Florida mortgages and the best mortgage
loan for you.
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ADJUSTABLE RATE MORTGAGES (ARMs)
Adjustable
Rate Mortgages (ARM)
Adjustable-rate mortgages (ARMs) offer lower initial interest rates than
fixed-rate mortgages. But after the specified period, the rates are tied to the
market index. Monthly payments on an ARM can go up or down at each adjustment
period, as market conditions change. To protect you in times of extreme rate
fluctuation, lenders offer ceilings, or "rate caps", on the amount the interest
rate can rise or fall at each adjustment period. The deferred interest is fully
tax deductible.
When it comes to ARMs there's a basic rule to remember...the longer you ask the
lender to charge you a specific rate, the more expensive the loan. This saves
you money early on, and may help you qualify for a more expensive home. These
loans are excellent for the buyer who likes payment flexibility.
An adjustable-rate mortgage is a good choice if you:
Plan to stay in your home for only a short time
Want lower initial payments
Have a small income but expect to earn more in the future
Are confident you can handle future rate increases
Some Examples:
6-Month ARM
A 6-month ARM offers an initial interest rate for the first 6 months, and can
be adjusted every 6 months thereafter based on the applicable index.
3/6-Month ARM
A 3/6-month ARM's initial rate is effective for 3 years, and can be adjusted
every 6 months thereafter based on the applicable index.
1-, 5-, and 7-Year ARMs
These mortgages maintain an initial interest rate for 1, 5, or 7 years, and can
be adjusted every year thereafter based on the applicable index.
Hybrid
ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
These increasingly popular ARMS -- also called 3/1, 5/1 or 7/1 -- can
offer the best of both worlds: lower interest rates (like ARMs) and a fixed
payment for a longer period of time than most adjustable rate loans. For
example, a "5/1 loan" has a fixed monthly payment and interest for the first
five years and then turns into a traditional adjustable-rate loan, based on
then-current rates for the remaining 25 years. It's a good choice for people
who expect to move (or refinance) before or shortly after the adjustment
occurs.
2/1 Buy Down Mortgage
The 2/1 Buy-Down Mortgage allows a borrower to qualify at below market rates so
they can borrow more. The initial starting interest rate increases by 1% at the
end of the first year and adjusts again by another 1% at the end of the second
year. It then remains at a fixed interest rate for the remainder of the loan
term. Borrowers often refinance at the end of the second year to obtain the
best long-term rates. However, keeping the loan in place even for three full
years or more will keep their average interest rate in line with the original
market conditions.
Annual
ARM
This loan has a rate that is recalculated once a year.
Monthly
ARM
With this loan, the interest rate is recalculated every month. Compared to
other options, the rate is usually lower on this ARM because the lender is only
committing to a rate for a month at a time, so his vulnerability is
significantly reduced.
Negative
Amortization (Neg. Am) Loan
This is a deferred-interest loan which is very powerful and offers many
options. Basically, the lender allows the borrower to make monthly payments
that are less than the accruing interest. Therefore, if the borrower chooses to
make the minimum monthly payment, the loan balance will increase by the amount
of interest not paid on the loan. The power of this loan lies in the borrower's
ability to choose between making the full loan payment, or the minimum payment,
or any amount in between. If a borrower's income varies throughout the year
(due to commissions, bonuses, etc.), the borrower can make a lower payment
during the "lean times", and then make higher payments when funds are readily
available.
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INTEREST ONLY MORTGAGES
These loans have a 3,5,7,10, and even 30 year interest only periods. The loan
allows you to pay interest only without having to pay the principal. Our 90%
HELOC interest only for the first 10 year period is a great example. Any
payments above the simple interest payment are applied directly into your
principal, reducing your loan balance and your next payment. Equity in your
home can also be used as a revolving line of credit. We offer this product now
for qualified borrowers to 100% financing.
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FIXED ARMS
This mortgage is the same as the interest only loans, except that you have to
pay the full principal and interest monthly with options. These are again
usually 3,5,7, and 10 year fixed period of a lower rate and become an
adjustable after your fixed period ends.
4.and last but not least are the FIXED 30 AND 15 MORTGAGE. these are very
simple and easy to understand, and have been around
forever. The interest rate
and monthly payment are fixed and stay the same for the entire life of the
loan. This loan is for the person who needs the peace of mind to know that his
monthly payment will not change.
THERE ARE MANY VARIATIONS OF MORTGAGES THAT I HAVE DESCRIBED. THE DETAILS AND
OPTIONS ARE ENDLESS...PLEASE TAKE THE TIME TO CALL ME TO DETERMINE WHAT THE
RIGHT OPTION FOR YOU IS.
Thirty-Year
Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and
monthly payments that never change. This may be a good choice if you plan to
stay in your home for seven years or longer. If you plan to move within seven
years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it
may be harder to qualify for fixed-rate loans than for adjustable rate loans.
When interest rates are low, fixed-rate loans are generally not that much more
expensive than adjustable-rate mortgages and may be a better deal in the long
run, because you can lock in the rate for the life of your loan.
Fifteen-Year
Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant
monthly payments. It offers all the advantages of the 30-year loan, plus a
lower interest rate -- and you'll own your home twice as fast. The disadvantage
is that, with a 15-year loan, you commit to a higher monthly payment. Many
borrowers opt for a 30-year fixed-rate loan and voluntarily make larger
payments that will pay off their loan in 15 years. This approach is often safer
than committing to a higher monthly payment, since the difference in interest
rates isn't that great.
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Special Mortgage Programs
A variety of mortgage programs are available for home buyers with special
circumstances or requirements or even less than perfect credit.
Some loans are available with 5% down or less and some lenders offer no money
down loan programs although they usually carry higher interest rates.
Appreciation of the property and tax benefits of ownership will often
compensate for the higher rates. The borrower can later refinanced once some
equity has been gained.
FHA
Mortgages
FHA insures mortgage loans to help people buy or refinance their current homes
with a low down payment. The FHA insures loans so that if buyers default, the
lenders still get their money. This encourages lenders to give mortgages to
people who might not otherwise qualify for a loan. Down payments on FHA loans
can be as low as 3% down*.
VA Mortgages
VA mortgage loans offer veterans mortgages with more favorable terms. VA
mortgages can be used to buy, build, improve, or refinance a home. These
mortgages are often made without any down payment at all*, and frequently offer
lower interest rates than are ordinarily available with other kinds of
mortgages. A veteran's certificate of eligibility and the VA-assigned appraisal
are required
First
Time Buyer Loan Programs
First time home buyer programs can offer smaller down payments and lower
interest rates for those that qualify. There are many first time buyer
assistance programs available and the definition of "First Time Buyer" is
provided by the U.S. Department of Housing and Urban Development (HUD). The
definition typically is a person who has not owned a home before but in some
cases you can still qualify if you have not owned a home in the previous three
years.
Low Credit Scores
We can find a loan that will meets your needs and fits your budget. Read about
FICO scores here
80-10-10 Loan
Many borrowers use an 80-10-10 type of loan to avoid paying private mortgage
insurance. The borrower contributes 10 percent to the down payment, borrows 80
percent in the first mortgage, and obtains a second loan for the remaining 10
percent. The lender sees a 20% down payment and does not require the additional
cost of private mortgage insurance.
The 80-10-10 mortgage loan can save money on jumbo mortgages, which usually come
with jumbo interest rates. The loans are used more often in high-priced housing
markets to secure better prices from Fannie Mae and Freddie Mac and can be used
in any combination, such as 70-20-10. The closing costs on a second mortgage
are generally low, much lower than paying for PMI and higher rates.
7 Year Balloon Mortgage
With a balloon mortgage, you start by making payments as you would with a
full-term loan, but after a certain period the balance of the mortgage comes
due. With 7 Year Balloons:
Your mortgage is amortized over the full term of the loan repayment period.
At the end of a specified period, the balance comes due - a balloon payment
needs to be made.
So with a 7 year balloon, you would make monthly payments for seven years that
have been calculated based on a 30 year mortgage payment plan.
At the end of those seven years, the remaining principal balance is due and
payable in full.
Advantages: You'll get a lower price on the loan, which will increase your
buying power - and remember that your payments will be calculated as if the
term were 30 years. You'll also usually have a conditional right to refinance
after seven years, though on average most owners will have already made a
change. If you know you have a lump sum of money on the way (such as an
inheritance, bonus, or dividend payment), if you expect to relocate in a short
period of time, or if you simply think you'll be in a better position to
refinance later, this may be a choice worth your consideration.
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*With a deposit of less than 20% down on conventional loans, Mortgage Insurance
(MI) is required and MI charges apply. Upfront and annual Mortgage Insurance
premiums may apply on FHA loans. One time funding fee for loan guaranty may
apply on VA loans.
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