1.Fixed–Rate Mortgage With a fixed–rate mortgage, you’ll always know what your monthly principal and interest payments will be. You can also lower your monthly payments by spreading them out over a long period of time. Your interest rate is guaranteed to remain fixed for the length of the loan. You can choose a 10–, 15–, 20–, 25– or 30–year term.
2.Adjustable–Rate Mortgage (ARM) ARMs offer lower early payments than a fixed–rate mortgage. They may also give you the opportunity to take advantage of lower rates in the future. If you’re planning on owning your home for a short period of time, an ARM may be a good option. Your interest rate is fixed for 5, 7 or 10 years (based on the chosen product), and becomes variable for the remaining loan term, adjusting every year thereafter. For example, a 5/1 ARM would have a fixed interest rate for the first five years and then convert to an adjustable rate, with annual adjustments for the remaining term of the loan. You can choose a 5/1, 7/1 or 10/1 ARMs with a 30–year term.
3.Jumbo Mortgage Jumbo Mortgage loan amounts are available from $417,000 to $2 million (or more depending on your property location) These fixed–rate and ARM loans are available for up to 30–year terms and amounts greater than conventional limits. You can choose a jumbo fixed (15–, 20– and 30–year terms available) or a jumbo ARM (5/1, 7/1 and 10/1 with a 30–year term).
DreaMaker mortgages. They require only 5% for a down payment (3% of your own funds), flexible funding options for closing costs, reduced mortgage insurance requirements and lower monthly payments compared to other options. These fixed–rate loans are available for up to 30–year terms and are used to purchase a 1– to 4–unit primary residence. You can finance up to 95% on 1–unit residences and get a term up to 30 years.
FHA Mortgage FHA mortgages include a down payment as low as 3.5% and flexibility, if you have “less than perfect” credit. An FHA Mortgage is a loan insured by the government. It can be used to buy or refinance 1– to 4–unit properties. You can choose a fixed 10–, 15–, 20–, 25– or 30–year term.
Home Affordable Refinance Program (HARP) Created by the federal government, HARP makes it easier for eligible homeowners to refinance their homes to a lower mortgage rate. It’s unique because you can refinance even if you owe more than your home is worth. You may not need to provide as much documentation, and the approval time may be faster than a traditional refinance. This program is available for eligible homeowners with fixed-rate or adjustable–rate mortgages.
Veterans Affairs (VA) VA loans have little or no down payment requirements, no monthly mortgage insurance and provide up to 100% financing.