Browse our available mortgage rate and loan programs below. Please feel free to reach out if you have any questions.
A fixed-rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan. These programs range from 10 to 30 years and, in most cases, can be paid off at any time without penalty. This type of mortgage is structured, or "amortized," so it will be completely paid off by the end of the loan term.
It is possible your monthly payment may vary if you have an impound account. Some lenders may collect additional money each month for the prorated cost of property taxes and homeowners insurance. However, the overall payments in a fixed-rate mortgage are very stable and predictable.
Adjustable-rate mortgages usually start with a fixed interest rate but can vary based on current market conditions. The benefit is that the initial rate on an ARM is lower than a fixed-rate mortgage, allowing you to afford a more expensive home. ARMs are usually amortized over 30 years, with the initial rate fixed for anywhere from one month to ten years. All ARM loans have a "margin" plus an "index." Margins on loans typically range from 1.75% to 3.5%, depending on the index and the amount financed in relation to the property value.
When the time comes for the ARM to adjust, the margin will be added to the index and typically rounded to the nearest one-eighth of 1% at the new interest rate; this new rate will be fixed for the next adjustment period. While adjustments can occur every year, there are factors limiting how much rates can adjust called "caps." If you had a 3/1 ARM with an initial cap of 2%, a lifetime cap of 6%, and an initial interest of 6.25%, the highest rate you could have in the fourth year would be 8.25%, and the highest rate you could have during the life of the loan would be 12.25%.
An interest-only mortgage means the monthly payment does not include the repayment on principle for a certain period of time. These are offered for fixed-rate mortgages and ARMs. At the end of the interest-only period, the loan becomes fully amortized, thus resulting in greatly increased monthly payments. The longer the interest-only period, the larger the increased payment will be.
While you won't build equity during the interest-only term, this mortgage could help you afford a more expensive home. Since you'll be qualified based on the interest-only payment and will likely refinance before the interest-only term expires, it could be a way to effectively lease your dream home now and invest the principal portion of your payment elsewhere.
Borrowers with sporadic incomes can benefit from interest-only mortgages, especially if the borrower is allowed to pay more than interest-only. In this case, the borrower can pay interest only during lean times and use the bonuses or income spurts to pay down the principal.
Mortgages with interest-only payment options may initially save you money, but they cost more during the 30-year term. However, most borrowers repay their mortgages well before the end of the full term.
With a graduated payment mortgage, the payment increases each year for a pre-determined amount (such as 5 or 10 years), then becomes fixed for the remaining duration of the loan.
When interest rates are high, borrowers can use a graduated payment mortgage to increase their chances of qualifying for the loan because the initial payment is less. The downside, however, is that the interest owed increases, and the payment shortfall from the initial years of the loan is then added. This could potentially lead to "negative amortization," which occurs when the loan payment for any period is less than the interest charged over that period, increasing the loan's outstanding balance.
FHA home loans are insured against default by the Federal Housing Administration (FHA) and are available for single-family and multifamily homes. These home loans allow banks to issue loans continuously without much risk or capital requirements. The FHA doesn't issue loans or set interest rates; it just guarantees against default.
FHA loans allow individuals who may not qualify for a conventional mortgage to obtain a loan, especially first-time home buyers. These loans offer low minimum down payments, reasonable credit expectations, and flexible income requirements.
This option provides veterans with a federally guaranteed home loan that requires no down payment. This program was designed to provide housing and assistance for veterans and their families.
The Veterans Administration provides insurance to lenders in case you default on a loan. Because the mortgage is guaranteed, lenders will offer a lower interest rate and terms than a conventional home loan. VA home loans are available in all 50 states and may also have reduced closing costs and no prepayment penalties.
Additionally, there are services that may be offered to veterans in danger of defaulting on their loans. VA home loans are available to military personnel that has served 181 days during the year, 90 days during the war, or spouses of a serviceman either killed or missing in action.
USDA loans are low-interest mortgages with zero down payments designed for low-income Americans who don't have good enough credit to qualify for traditional mortgages. You must use a USDA loan to buy a home in a designated area that covers several rural and suburban locations.
A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan is $528,250 in most counties, as determined by the Federal Housing Finance Agency (FHFA). Homes that exceed the local conforming loan limit require a jumbo loan.
Jumbo loans are also considered riskier for lenders because the lender is not protected from losses if a borrower defaults. Also known as non-conforming conventional mortgages, jumbo loans are typically available with either a fixed interest rate or an adjustable rate, and they come with a variety of terms.