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Loan ProgramsThe following is a partial list of programs offered by Mortgage Financial Services, Inc. with a brief description of the key elements of each. For a complete list of the programs that we offer, please contact us at 800-659-4663.
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Fixed Interest Rate Mortgages
As the name suggests, fixed interest rate mortgages provide a fixed interest rate during the entire length of the loan. These loans are generally offered in 15 and 30 year durations. Why would you want a fixed rate?
1. Your monthly payments are fixed over the life of the loan which is beneficial to your own budgeting and financial planning. You will always know what your monthly payment is going to be.
2. The interest rate on your loan will not change. If rates rise after you close your loan, your payments will not increase.
With fixed rate mortgages, there are no surprises or uncertainty about your mortgage payment. But with a fixed rate, you will pay a higher interest cost than the Adjustable Rate Mortgage (ARM). Another potential drawback is that you will have higher mortgage payments than an ARM due to the higher interest rate. Fixed rates deliver peace of mind and the opportunity to refinance if there is a sudden interest rate drop.
Contact Mortgage Financial and a Loan officer will be happy to review your needs to explore whether a fixed rate mortgage fits your needs.
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Adjustable Rate Mortgages (ARMs)
Adjustable Rate Mortgages (ARMs) are types of mortgages that do not have a fixed interest rate but rather one that is adjustable during the length of the loan. There are many types of ARMs with different loan lengths ranging from one month to up to ten years. Why would you consider an ARM?
1. The initial benefit of ARMs is a lower monthly payment compared to a fixed rate mortgage. Because the interest rate can change when overall rates fluctuate throughout the life of the loan, you start with a considerably lower interest rate than a fixed rate mortgage.
2. Because the interest rate is lower, you may qualify for a bigger loan which could expand your choices for a home.
3. If interest rates drop after your loan closes, you can take advantage of lower rates without having to refinance your loan. Depending on your loan, you could start to see a lower rate after one, six or twelve months.
4. ARMs can be transferred to a creditworthy buyer, if you have to sell your home during a period of extremely high interest rates like we saw in the early 1980s. This fact alone could add significant value to your home.
ARMs provide significant benefits, but they do carry some risks. Unfortunately, you cannot control interest rate movements. When federal and international interest rates rise, your interest rate will rise at some point, depending on the loan’s specifications. As your interest rate rises, your monthly payment rises and there in lies the risk of ARMs – potential higher monthly payments during the life of your loan. If your financial situation allows you leeway with potential change in your monthly payment, an adjustable rate mortgage could be right for you.
Contact Mortgage Financial and a loan officer will be happy to explain ARMs in greater detail.
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Jumbo Mortgages
“Jumbos” or non-conforming loans are loans that exceed Fannie Mae and Freddie Mac’s maximum mortgage amounts. For 2008, these are the guidelines for conforming mortgages:
First mortgages
One-family loans: $417,700
Two-family loans: $533,850
Three-family loans: $645,300
Four-family loans: $801,950
Note: One- to four- family mortgages in Alaska , Hawaii , Guam , and the U.S. Virgin Islands are 50 percent higher than the limits for the rest of the country.
Jumbo loans are generally offered with a higher interest rate as well as increased down payment requirements. However, do not despair. There are many techniques to keep your loan under these requirements.
Contact Mortgage Financial today to learn more about Jumbo or non-conforming loans and how we can help you best utilize them.
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Reverse Mortgages
Reverse mortgages are becoming an increasingly popular program for seniors age 62 and over to diversify financial resources and stay in their home at the same time. A reverse mortgage lives up to its name. Instead of making payments on your home, we make payments to you in the form of a lump sum, monthly payments or a credit line – all of which are tax-free.
Whether your home is your biggest asset or you simply want to diversify your financial foundation, reverse mortgages can be an excellent way to gain greater security as well as financial freedom. If increasing property taxes and healthcare have you concerned or you simply want extra cash to live more comfortably, reverse mortgages are worth considering.
To provide you with the most information possible about reverse mortgages we have created another site entirely dedicated to reverse mortgages. Visit ikeptmyhouse.com to become more informed about our Reverse Mortgage program.
We are dedicated to delivering unparalled service to meet your financial needs and will be with you every step of the way. We are Your Lifetime Lender. ™
Visit ikeptmyhouse.com for more information or call us today!
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FHA Mortgage
Backed by the Department of Housing and Urban Development, this mortgage offers the borrower the ability to put as little as 3% down payment – and they can even finance “allowable” closing costs. Seller can contribute up to 6% of the purchase price to the buyer towards closing costs.
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VA Mortgages
Backed by the Veterans Administration and the federal government, it is similar to FHA except that you have to be a qualified Veteran or military person.
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Other Loan Programs
One of the greatest strengths of the mortgage industry is the constant innovation in financing programs. Fannie Mae and Freddie Mac’s aims are to increase the number of homeowners in America. Mortgage Financial works with both of these organizations as well as a host of private mortgage investors to offer you the widest range of options to help make your dream of home ownership a reality. Below is just a start of the options that Mortgage Financial can offer, such as:
First-time Homebuyers
No Point, No Fee
Imperfect Credit Programs
Flex 97
No-Doc
Please contact Mortgage Financial and a loan officer will be happy to explain these programs in greater detail.
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