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Mortgage Loan Programs
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Blemishes or Dings on your Credit? We can help; Lenders have loans for all types of credit. Consumers today have the best of all worlds’ lenders competing for your business. Whatever type of loan you require, debt consolidation, new home purchase, vacation home, cash out refinance, interest only, we can help. Call Best Mortgage and Loan today and speck to our knowledgeable loan representatives
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LOANS TO HELP REESTABLISH CREDIT
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Adjustable Rate Mortgage (ARM) - Remains fixed for a certain period of time then adjusts periodically. Make sure you ask about the index, margin, and cap rate!
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6 month ARM
12 month ARM
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Six and twelve month ARMs can significantly lower a mortgage payment for six or twelve months. That can be enough time to catch up on other debt payments and improve your credit rating.
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Six and twelve month ARMs can become expensive after the initial six or twelve month introductory period. Chances are, you'll want to improve your credit and obtain a better loan.
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Fixed Rate Mortgages - The payment remains fixed for the period of time in question! These short term loans keep payments low the early years but can become expensive in later years.
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2 year fixed
3 year fixed
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Two and three year fixed rate mortgages provide the security of a fixed loan payment and relatively low, fixed interest rate for the first two or three years. For most people trying to improve their credit, two to three years is plenty of time. After two or three years, these loans convert to ARM loans.
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Two and three year fixed rate mortgages convert to ARM loans at the end of the fixed rate period. Rates on ARMs can increase. Chances are, you'll want to improve your credit and obtain a different loan before the two or three years are up.
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Fixed Rate Mortgages - The monthly payment remains the same until loan is paid off in full.
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15 year fixed
30 year fixed
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Fixed monthly payment and rate protect against interest and monthly payment increases
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Higher interest rate compared to ARM introductory rates
Higher rate compared to two and three year, fixed rate loans
Fifteen and thirty year loans should generally be obtained if you plan not to move or refinance in the foreseeable future. If you're trying to improve your credit in anticipation of refinancing for a lower-rate loan, consider avoiding these loans |
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GOOD CREDIT LOANS
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ONCE GOOD CREDIT IS ESTABLISHED (OR REESTABLISHED),
THESE LOANS ARE AVAILABLE
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Adjustable Rate Mortgages - Remains fixed for a certain period of time then adjusts periodically. Make sure you ask about the index, margin, and cap rate!
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10/1 ARM
7/1 ARM
3/1 ARM
1 year ARM
6 month ARM
2/28: 2 yr. fixed rate; 28 yr. ARM
1 month ARM
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Lower initial monthly payment
Lower payment over a shorter period of time
Rates and payments may go down if rates improve.
May qualify for higher loan amounts |
More risk
Payments may change over time
Potential for high payments if rates go up |
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Balloon Mortgages - The mortgage is due in full after the initial period!
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15 year (30 year fixed, due in 15)
7 year
5 year
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Lower initial monthly payment
Lower payment over a shorter period of time
Many balloon mortgages offer the option to convert to a new loan after the initial term |
Risk of rates being higher at the end of the initial fixed period
Risk of foreclosure if you cannot make the balloon payment, refinance or exercise the conversion option |
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No or Stated Income/Asset Programs - Generally for Self Employed borrowers and or Business people.
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No tax returns or W-2s
No proof of assets or down payment
No verification of income
Fast approval |
Higher rates
Higher down payment |
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No points, No fee Programs - If the Lender does not charge fees up front generally the rate will be higher in order to compensate the lender for their services
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No closing costs
Less money required to close |
Higher rates
Higher payment |
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Home Equity Line of Credit - also known as a 2nd Mortgage with adjustable rates.
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You only borrow what you need
Pay interest only on what you borrow
Access to funds as needed
Interest may be tax deductible
Up to 125% loan-to-value |
Rates can change. The maximum interest rate is normally high
Payments can change
Harder to refinance your first mortgage |
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Home Equity Fixed Loans - Also known as a 2nd Mortgage with fixed rates.
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Fixed payments
Receive one lump sum at closing
Interest may be tax deductible |
Higher interest rates compared to 1st mortgages
Harder to refinance your first mortgage |
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Debt Consolidation Loan - Combining Credit Card debt and others debts into a new 1st Mortgage Loan
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Fixed payments or ARMS
Credit Card balances will be paid off at closing
Interest may be tax deductible |
May have higher interest rates compared to other 1st mortgages that are a rate and term refinance
Harder to refinance your first mortgage next time since you have a larger loan |
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Reverse Mortgage- For Seniors that are 62 and older and own their home
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No Payments
Credit does not matter.
Receive one lump sum at closing or
Receive a line of credit or
Receive an annuity for the balance of the stay in the home |
Your home cannot be taken away from you for any reason |
