Loan Programs
Fixed Rate Mortgages
The most common type of mortgage program where your monthly payments
for interest and principal never change.
Adjustable Rate Mortgages (ARM)
These loans begin with an interest rate that is lower than
a comparable fixed rate mortgage, but the rate changes at
specified intervals.
Standard ARMS and the Differences
Choosing an ARM with an index that reacts quickly lets you
take full advantage of falling interest rates.
Introductory Rate ARM's
Most ARM's have a low introductory rate, which is good anywhere
from 1 month to as long as 10 years.
London Inter Bank Offered Rate (LIBOR)
LIBOR is the rate on dollar-denominated deposits, also know
as Eurodollars, traded between banks in London.
Balloon Mortgages
Short term mortgages that have some features of a fixed rate
mortgage.
Interest Rate Buydowns
The buyer would pay points above current market points in order
to pay a below market interest rate during the first two
years of the loan. At the end of the two years they would
then pay the old market rate for the remaining term.
Cost of Funds Index (COFI)
The ratio of the dollar amount paid in interest during the
month to the average dollar amount of the funds for that
month constitutes the weighted average cost of funds ratio
for that month.
Graduated Payment Mortgage (GPM)
With a GPM the payments are usually fixed for one year at a
time.
Compare
Programs
The right type of mortgage for you depends on many different factors. Or, Apply
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