Mortgage Loan Options

Fixed Rate Mortgages The interest rate on this agreement never changes for as long as you hold your mortgage. It offers the comfort of steady payments. Fixed rates are available in a number of different terms. Longer Fixed Ideal for: Those who plan to own a home for a long time. Those who want the comfort of steady payments. Those who have set incomes. Those who want low monthly payments. Shorter Fixed Terms Ideal for: Those who want rate consistency. Those who can afford slightly higher payments. Those who want to reduce interest costs. Those who plan to keep the loan 7 years or more. Those with set incomes.

Adjustable Rate Mortgage (ARM)
This type of mortgage option became popular when interest rates were high. On ARMs the interest rate is subject to adjustment at periodic intervals. The starting rate is typically lower than on other mortgage loan plans.

Ideal for:

• Those who believe rates will stay the same or drop in the future.
• Those who can count on income increasing in the future.
• Those who plan on owning their homes for up to 5 years.
  

These mortgages are guaranteed by the federal government.  They are offered to qualified borrowers.  FHA loan allows flexible credit standards and the mortgage if often assumable.

Ideal for:  First Time Home Buyers with High LTV Financing.

Balloon Mortgages
Balloon mortgages are fixed rate loans that may be amortized over a period of years. They have low monthly payments but require a lump sum payment of the mortgage at the end of the term. Their rates are typically lower than fixed rate loans.

Ideal for:

• Those who plan to sell their home within a few years.
• Those who believe the lower rate more than compensates for the potential rate adjustment after a few years.
• Those who expect increased income over a few years.

Guaranteed Rural Housing (FmHA)
An FmHA mortgage is insured by the federal government. It requires no down payment. Loans may be made up to the property's appraised value. Mortgages are long term with a fixed interest rate.

Ideal for:

• Those who have only a small down payment.
• Those who want the comfort of steady payments.
• Those who have set incomes.
• Those who want low monthly payments.

Federal VA Mortgage
These mortgages are guaranteed by the federal government. They are offered to qualified Armed Forces personnel, active military personnel, Veterans or their widows. A VA loan allows flexible credit standards and the mortgage is often assumable.

Ideal for:

• Eligible Veterans