How do I know what loan program to choose?
Your Loan Officer will work with you to determine which loan product benefits you. You will review your current financial situation, future goals and also consider factors like the length of time you plan on living in the home and comfortable monthly payments.
What is the difference between a fixed-rate and adjustable-rate mortgage?
A fixed-rate mortgage has an interest rate and payment that remain constant over the life of the loan. With an adjustable-rate mortgage, the rate can either increase or decrease, based upon the terms of the loan. This could result in an increase in the monthly payments in order to have the loan paid in full by maturity.
What is a balloon mortgage?
A balloon mortgage has a fixed-rate payment for the first 5-7 years of the loan, then a lump sum payment is due on the balance of the loan at a specified date when it matures.
What is a conventional mortgage?
A conventional mortgage is a fixed-rate loan over a specific time frame. It’s secured by a mortgage or deed of trust with an acceptable loan-to-value (LTV) ratio range.
What is a jumbo mortgage?
A jumbo mortgage is a conventional loan that exceeds the maximum agency (Fannie Mae, Freddie Mac) mortgage amount guidelines for a conventional loan.