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| Fixed Rate Loans |
| Adjustable Rate Loans |
| Jumbo Loans |
| 40 and 50 year Fixed Loans |
| Alternative Documentation Loans |
| Credit Challenged Loans |
| and many more options |
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Fixed Rate Loans
This loan is fixed for a predetermined number of years ( usually 15 or 30 years ). Predictability is the big plus this loan. You know exactly how much interest you will pay over the term of the loan. The total monthly payment of principal and interest is fixed, and in early years it consists primarily of tax-deductible interest.
Mortgages without prepayment penalties permit you to shorten the term of the loan at will -- and lower ultimate interest cost -- by making periodic payments against principal.
Term: 30 years
Maximum Amount: $417,000
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| Rates | Points | APR |
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| 5% | 2% | 5.362% | | 5.5% | 1% | 5.778% |
| | Interest on fixed rate mortgages can sometimes be higher than the initial rate on adjustable-rate loans. If you choose a low-down-payment loan, you may have to pay for mortgage insurance -- an added monthly expense that protects the lender from risk of loss. |
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Adjustable Rate Loans
An adjustable-rate mortgage differs from a fixed-rate mortgage in many ways. With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an ARM, the interest rate changes periodically, usually in relation to an index, and payments may go up or down accordingly.
An adjustable rate mortgage can be fixed for 1 month, 2 years, 3 years, 5 years, or 7 years. After that initial fixed period the rate can change.
Term: 30 years
Maximum Amount: $417,000
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| Rates | Points | APR |
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| 4.5% | 2% | 4.691% | | 5.875% | 1% | 5.135% |
| | An Adjustable Rate Mortgage can be a cheaper loan in the long run than a fixed rate mortgage, but it is not always. Before deciding on an adjustable rate mortgage, you should understand the terms for your particular mortgage, and be comfortable with them. You should know that even if your mortgage does adjust upward ( which is very possible ) , that you could still afford the payment. |
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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 above this maximum loan amount, they often have a little higher interest rate than conforming, but the spread between the two varies with the economy.
Term: 30 years
Maximum Amount: $15,000,000
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| Rates | Points | APR |
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| 6% | 1% | 6.287% |
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40 and 50 year Fixed Loans
These are fixed rate loans with the term streched out over a longer term in order to make the monthly payment a little bit lower than on the more common 30 year fixed programs.
Just as on the 15 and 30 year fixed loans, one without a prepayment penalty will allow you to pay down your loan whenever you like.
Term: 30 years
Maximum Amount: $417,000
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| Rates | Points | APR |
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| 6% | 1% | 6.25% |
| | In general, the longer a loan is ammortized over, the higher the interest rate is.
Also, many loans ammortized over a 40 or 50 year period will have a balloon at the end a 30 year period.
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Alternative Documentation Loans
Alternative documentation loans can be stated income, stated or verified assets, no ratio and no doc loans. These can be good for people who are self employed, paid on commission, have bonus income, claim a lot of tax deductions, or for borrowers who are receiving another form of income that needs to be stated (and cannot be verified).
Term: 30 years
Maximum Amount: $417,000
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| Rates | Points | APR |
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| 9% | 1% | 9.344% |
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Credit Challenged Loans
With the recent changes in the mortgage industry, it has gotten harder to get approved for a mortgage than it used to be.
Still there are many programs still available for those with less than perfect credit. People with recent bankrupcy, foreclosures, or collections may be interested in looking at one of these programs. These credit challenged loans very often carry prepayment penalties, but can be obtained without them. The borrower must review the terms of these loans carefully.
Term: 30 years
Maximum Amount: $417,000
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| Rates | Points | APR |
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| 7.5% | 1% | 7.814% |
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and many more options
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Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $8,340. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors.
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