About the Loan Programs

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Fixed Rate Mortgages
The traditional fixed rate mortgage is the most common type of loan program, The monthly principal and interest payments dont change during the life of the loan.

Adjustable Rate Mortgages (ARM)
Adjustable Rate Mortgages (ARM)'s are loans whose interest rate can change during the loan term. These loans usually have a fixed interest rate for an initial period of time and then can adjust based on current market conditions.

Hybrid ARMs (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM)
Hybrid ARM mortgages, also called fixed-period ARMs, combine features of both fixed-rate and adjustable-rate mortgages.

Interest Only Mortgages
A mortgage is called “interest only” when its monthly payment does not include the repayment of principal for a certain period of time.

Components of an ARM
To understand an ARM, you must have a working knowledge of its components. The rate adjustment is tied to the rate of some other index, and usually has preset limits, as to the amount of allowable change.

Commonly Used Indexes for ARMs
This is a list of the most commonly used indexes by ARM lenders.

Balloon Mortgages
Balloon mortgages have an interest rate that is fixed for an initial period of time, and then the remaining principal amount is due at the end of the term.

Graduated Payment Mortgages
Graduated Payment Mortgage is a loan where the payment graduates (increases) annually for a predetermined period (e.g. five or ten years), and then becomes fixed for the duration of the loan.

What kind of loan program is best for you?
So what kind of mortgage is best for you? Fixed rate? Adjustable rate? I am here to help you decide which is best for your needs.