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| Fixed Rate Mortgages |
| FHA Mortgages |
| Adjustable Rate Mortgages |
| VA Mortgages |
| Jumbo Loans |
| Balloon Mortgages |
| Other Options |
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Fixed Rate Mortgages
With a fixed rate mortgage (FRM) the interest rate and your mortgage monthly payments remain fixed for the period of the loan. Fixed-rate mortgages are available for 40, 30, 25, 20, 15 and 10 years. Generally, the shorter the term of a loan, the lower the interest rate you could receive.
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FHA Mortgages
The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. Traditionally, FHA loans have lower down payment requirements, and they are easier to qualify for than conventional loans. FHA loans cannot exceed a certain statutory limit. Your loan officer will have information regarding your limit.
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Adjustable Rate Mortgages
An Adjustable loan has an interest rate, and accordingly monthly payments, that fluctuate over the period of the loan. With this type of mortgage, periodic adjustments based on changes in a defined index are made to the interest rate. The index for your particular loan is established at the time of application.
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VA Mortgages
VA loans are guaranteed by the U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. In addition, it is easier to qualify for a VA loan than a conventional loan. VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan.
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Jumbo Loans
Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as 'jumbo' loans. Because jumbo loans are bought and sold on a much smaller scale, they often have a little higher interest rate than conforming, but the spread between the two varies with the economy.
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Balloon Mortgages
Balloon loans are short-term fixed rate loans that have fixed monthly payments based usually upon a 30-year fully amortizing schedule and a lump sum payment at the end of its term. Usually they have terms 5 or 7 years. The advantage of this type of loan is that the interest rate on balloon loans is generally lower than 30- and 15- year mortgages resulting in lower monthly payments. The disadvantage is that at the end of the term you will have to come up with a lump sum to pay off your lender; either through a refinance or from your own savings.
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Other Options
Home Equity Loans (including 2nd liens)
Agency Affordability Loans
No Cost Purchase and Refinance Loans
Limited Documentation Loans (i.e. Stated Income)
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