Flexible Loan Programs

People usually Refinance their current mortgage(s) to get a lower interest rate or borrow more money. You can refinance the existing loan amount in most cases, or take cash out up to 85% of your homes value.

Any of the above three types of loans could be used here, but you are simply stating that you will be using the funds to improve the home.

Because Mortgage Rates are usually 2 to 3 times lower than Interest Rates of Small Bank Loans, Credit Cards, etc., many people choose to pay off all their bills with funds from a mortgage. This can be a very wise move as it not only relieve you of the multitude of monthly bills, but the accruing high interest rates on many small loans is very expensive in the long run.

A “Second Mortgage” can be taken out on your existing home against the “equity” you currently have. Some lenders will allow you to use 100% of your homes current value to determine equity, but 90% is common, and 80% is required for the best rates (closest to first mortgage rates). Thus, on a 200,000 home, if you owe 100,000 on your First Mortgage, you could borrow up to $100,000. Rates are usually a bit higher than first mortgages. Since this is a second mortgage, it is a bit more risky than a first mortgage for the lender, thus the interest rate is higher. If something were to happen, the first mortgage lender would be paid first.

Loans and gifts from family, friends, and other organizations can help you put together a down payment sufficient for your homeloan needs. The percentage of the loan or gift that is available for use as a down payment can vary depending on the type of homeloan you qualify for. It is important to discuss any loans or gifts you plan to use as a down payment with your mortgage lender. Many companies also offer programs to their employees to make thehome buying experience easier. 401K plans are often used for this purpose and employees are permitted to withdraw from their 401K plans without penalty to provide a down payment on a homeloan. Making use of your 401K program can be useful and beneficial but there can be drawbacks that must be examined.

One size loan does not fit all. Good credit or not-so-good credit, we can find you a loan. Whether it’s a purchase, re-finance, or construction loan, we have the most comprehensive loan products on the market for you to choose from that fit your individual needs.

We’ve highlighted the programs more commonly offered today. Characteristics of each loan program are unique, so consult us for more information and to become familiar with the details of the programs available to you.

To help determine the best loan program for you, consider the following:

• How important is payment certainty?
  If knowing that your payment will be the same every month is important, consider a fixed-rate mortgage.
• How important is rapid equity buildup?
  If rapid equity buildup is a factor, consider a shorter amortization period, such as a 15-year, fixed-rate mortgage.
• Do you anticipate increasing or stable income?
  If income growth is anticipated, you could take advantage of a lower start rate on an ARM or a temporary buydown.
• Other factors to consider include:
  • ability to qualify at market rates for loan amount selected
  • anticipated term of occupancy
  • possibility of significant rate changes
  • existence of up-front costs