Fixed-Rate Mortgages

A common type of mortgage is the fixed-rate mortgage. As the name implies, your annual percentage rate is fixed for the lifetime of the mortgage. Your combined principal and interest payment (sometimes called P+I) will be the same every month. In most cases, your total monthly mortgage payment includes not only principal and interest, but also property tax and insurance (T+I) payments (sometimes called P+I/T+I). While the P+I will always be the same, your T+I may change over time. So even though you have a fixed-rate mortgage, your monthly payment may change.

The advantage of a fixed-rate mortgage is that you have permanent protection against rising interest rates.

A common type of mortgage is the fixed-rate mortgage. As the name implies, your annual percentage rate is fixed for the lifetime of the mortgage. Your combined principal and interest payment (sometimes called P+I) will be the same every month. In most cases, your total monthly mortgage payment includes not only principal and interest, but also property tax and insurance (T+I) payments (sometimes called P+I/T+I). While the P+I will always be the same, your T+I may change over time. So even though you have a fixed-rate mortgage, your monthly payment may change.

The advantage of a fixed-rate mortgage is that you have permanent protection against rising interest rates.

If you're in the market for a large home or one on a large lot, you may need to finance a considerable sum. Many mortgage plans have limits on the total amount loaned for single-family homes. A jumbo mortgage is simply a regular mortgage at a higher dollar amount. It may require a larger down payment percentage and has a higher interest rate.

A common type of mortgage is the fixed-rate mortgage. As the name implies, your annual percentage rate is fixed for the lifetime of the mortgage. Your combined principal and interest payment (sometimes called P+I) will be the same every month. In most cases, your total monthly mortgage payment includes not only principal and interest, but also property tax and insurance (T+I) payments (sometimes called P+I/T+I). While the P+I will always be the same, your T+I may change over time. So even though you have a fixed-rate mortgage, your monthly payment may change.

The advantage of a fixed-rate mortgage is that you have permanent protection against rising interest rates.

If you're buying for the first time, frequently moving, looking for a way to qualify for a more expensive house than you'd normally expect for your income level, or just looking for more creative ways to finance, you should look into adjustable-rate mortgages (ARMs). An ARM is a mortgage in which the interest rate and monthly payment periodically change to reflect current market conditions.

An ARM generally has a lower initial interest rate than a fixed-rate mortgage and usually allows you to qualify for a larger loan. This is because you are sharing some of the risk of rising interest rates with the lender. In other words, if rates go up or down, your payment goes up or down as well.

Depending on the plan, your monthly payment will change periodically (for example, once every six months, every year, or every three years). To give you some protection from high-interest inflation, you may receive a "cap" or ceiling to limit the amount your interest rate can rise, both periodically and over the lifetime of the loan. The amount of the rate change depends on the "index" used.)

A variation on a regular ARM is a convertible ARM, which gives you the option of converting to a fixed-rate mortgage at a later time. A convertible ARM has the advantage of a lower initial rate and the ability to change to a fixed rate after 12 months.

If you're in the market for a large home or one on a large lot, you may need to finance a considerable sum. Many mortgage plans have limits on the total amount loaned for single-family homes. A jumbo mortgage is simply a regular mortgage at a higher dollar amount. It may require a larger down payment percentage and has a higher interest rate.

Interest-Only Conforming and Jumbo  adjustable rates mortgage products have attractive low interest rates which give you the financial freedom of having extra disposable income, purchase buying power, or lower monthly payments.

A Purchase Money Second is a flexible line of credit against the equity in your home that you can draw from when you need it or a lump sum loan to purchase.  The primary purpose may be for home improvements, refinancing of existing mortgages, and purchase requests for residential real estate.  The loan product is available with 3 payment options:  Home Equity Line Credit (HELOC) , Fixed Rate Second - Fully Amortized, Fixed Rate Second - Interest-Only <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><?xml:namespace prefix = o />

A Construction-to-Permanent Loan is two loans in one. Financing the building of a new home, or renovating your existing home, includes a construction phase, the period of time your new home is being built. Once construction is complete, a permanent mortgage is needed. Our Construction-to-Permanent Loan includes both the construction phase and the permanent mortgage. This is why it’s called a Construction-to-Permanent Loan.

One-time close means with one construction loan application, one loan qualification and one loan closing, you get all the financing you need—a construction loan to build your home and a permanent mortgage when construction is complete. Best of all, you only pay one set of closing costs. And there are no payments during the construction phase¹ so you can spend your time focusing on your new home construction project.

As part of your Construction-to-Permanent Loan budget, we establish an account to pay the estimated interest costs during the construction or renovation of your home. This way you make no monthly payments during construction unless your interest reserve account is depleted before completion of your project. We like to think of it as a worry-free mortgage!

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CONSTRUCTION LOAN BUDGET ESTIMATOR

CONSTRUCTION LOAN CHECKLIST

The Construction-to-Permanent Loan process is similar to the process of a standard home purchase or refinance transaction. But, unlike a purchase transaction for an existing home, a Construction-to-Permanent Loan involves determining the value of a home that is not yet constructed. In determining the future value of your new home, we request information on the planned improvements and construction costs.

Unlike a standard purchase mortgage, a Construction Loan is disbursed in the form of payments (or "draws") as each phase of construction is completed.