Loan Programs

Fixed-Rate Mortgages

  • Interest rate does not change during the term.
  • Principal and interest (P & I) does not change.
  • Fixed-rate mortgages fully amortize over a defined period of time and are paid in-full at the end of the loan term.
  • Different loan terms are available (10,15,20,25 and 30 year are available).
  • The shorter the term, the faster equity is built and less interest paid.

Fixed-Rate Balloons

  • P & I payment and interest rate do not change.
  • Regular monthly P & I payments are based on 30-year amortization, while the unpaid balance (balloon) is due at the end of a shorter, predetermined term.
  • Interest rate is typically less than fixed-rate loans.
  • Most borrowers anticipate refinancing or selling prior to the end of the balloon term.

Interest-Only Mortgages

  • There are no reductions to the principal amount unless a principal payment is made on top of the monthly interest only payment.
  • There is no provision for negative amortization.
  • Interest-only payments are limited to the fixed term of the mortgage, i.e. 7 year Interest Only will be for 84 months. After the 84 months, the payments will be adjustable and will be principal and interest.
  • After the fixed term, the loan is amortized for the remainder of its term with principal and interest payments.

Adjustable-Rate Mortgages (ARMs)

  • There is potential for the interest rate/ payment to fluctuate.
  • ARMs offer borrowers initial interest rates that are usually lower than fixed-rate mortgages.
  • Most borrowers anticipate refinancing or selling prior to the end of the fixed rate of the loan terms.