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Types of Home Loans Because every customer is different, we provide a large variety of customized home loan programs including refinance and home purchase options. Our Loan Officers are specially trained to meet your individual needs, so you are able to achieve your financial goals.

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In this section, you'll find definitions of many types of home loans. To determine the best kind of loan for your unique needs, be sure to discuss your home loan options with one of our Loan Officers.

Fixed Rate Mortgages:

Fixed rate mortgages offer a loan for which the interest rate will remain the same throughout the entire term for the original borrower. When a borrower agrees to a fixed rate mortgage the combined Principal and Interest payment does not change. However, the amount directed towards principal increases from month to month causing the amount paid towards interest to decrease. The homeowner will pay the most interest with their first mortgage payment and the least amount of interest with their last mortgage payment. Why choose Fixed-Rate Mortgages? With a fixed rate mortgage, your interest rate does not change and your payment does not change. Traditionally, this has been the most popular mortgage when interest rates are low. With a fixed rate mortgage, you calculate how long it will take to pay off all the principal and interest, and you arrive at a monthly payment. The major advantage of fixed rate mortgages is that they present predictable housing costs for the life of the loan. If you'd like the peace of mind that comes with a stable interest-rate payment, then a fixed-rate mortgage may be the ideal choice.

Generally, you'll find that fixed rate mortgages are the right choice if:

• Interest rates are low

• You can afford the payment for the house you want

• You need to budget for and predict monthly payments

• You will keep your home for a relatively long period of time

FHA Loan:

A loan insured by the Federal Housing Administration. An FHA Loan is usually available at an attractive lower rate. It is open to all qualified borrowers. Fixed-Rate Mortgage: A mortgage for which the interest rate will remain the same throughout the entire term for the original borrower.

Interest-Only:

This type of loan is most popular with homeowners who have homes that are appreciating in value and who want the lowest payment possible. Qualified borrowers make interest-only payments with the choice to make higher payments in order to reduce the principal. There are a variety of options, including making interest-only payments during the first 3, 5, or 7 years of these mortgages.

Debt Consolidation:

A loan that combines monthly bills (for example, high interest credit cards and car loans) into one new low low-interest home loan with one low monthly payment. This type of home loan can save a borrower hundreds of dollars every month.

Mortgage Refinance:

A new loan made to a borrower who currently owns a property or has a first mortgage on it. Refinancing either pays off the existing mortgage with a new first mortgage, or a second mortgage is made in addition to the existing first mortgage.

Home Equity Line of Credit (HELOC):

A loan for which you can either receive a large sum of money or have an open line of credit that can be drawn as it is needed, with, typically, low interest rates. Call your local office for more details regarding the above home loan programs and find out how one of our Loan Officers can help you with a loan that matches your unique needs.

Adjustable Rate Mortgage (ARM):

A mortgage in which the interest rate is adjustable periodically based on a pre-selected index. This often has lower monthly payments, and it also has a ceiling above which payments cannot go.

There are a couple reasons why a customer would want an adjustable rate mortgage:

• Borrower only plans to stay in his/her home for a short period of time.

• The homeowner may have a job that relocates him/her from time to time

• The homeowner has bought a starter home

• The homeowner plans on refinancing in the future

• Borrower has damaged credit and needs to refinance

• A homeowner who has damaged credit can consolidate all of his/her debt into one mortgage.

If the borrower agrees to an ARM he/she can get a relatively lower interest rate and make payments during the fixed rate portion of the loan and then refinance. o Because the credit scoring model has a “short term memory” and can be repaired after 1 or 2 years, an ARM is perfect for someone wishing to clean up his/her finances. When the adjustable rate portion of the loan occurs the borrower will have the incentive to refinance again with hopefully clean credit into a more long term fixed rate loan. Adjustable-rate mortgages (ARMs) are loans with interest rates that change.

Call us for more details regarding the above loan program and find out how one of our personal Loan Officer’s can help you with a loan that matches your unique needs. Find out how we can get you to a better place.