Mortgage Loans ProgramsFixed Rates Program
Fixed rate mortgage loans maintain a constant level of interest. An advantage of this program is that the interest rate cannot rise above the initial level. However, if the interest rates go down, you will not be able to adjust accordingly. This program is recommended to those who qualify for low interest rates to begin with.
Adjustable Rates Program
Adjustable rate home loans or adjustable product mortgage loans have the ability to adjust every six months according to changing mortgage rates. That is, the borrower can take advantage of reduced rates and lower their monthly payments. These home loans usually have one, two, or three year terms. To protect borrowers, the rate applied to the mortgage loans cannot fluctuate more than 1.5% per six month term, and the rate is capped at a pre-disclosed level.
Home Equity Line of Credit Program (HELOC)
HELOC mortgage loans are more flexible, and geared towards a responsible borrower. The borrower has a revolving line of credit similar to a credit card. You may borrow during the draw period, and you have a great deal of control over how much you wish to borrow. You may borrow as much of your home equity as you wish. Monthly payments vary according to how much equity has been borrowed. Once payments are made, the line of credit is restored, and you may borrow on your equity again. The funs procured by this type of home loan may be used at the borrower's discretion.
Balloon home loans or balloon product mortgage loans programs involve making monthly payments in an agreed upon term. When the term ends, the borrower can refinance mortgage loans and then must pay the balance of the home loan in a lump sum.
Credit Comeback/Credit Repair Program
Credit comeback or credit repair home loans are designed for borrowers who have previously made late payments on their mortgage loans. This mortgage loans program allows the borrower's mortgage rate to be reduced by .375% every year for four years if their twelve previous payments have been made on time. The interest rate on these mortgage loans will never be raised, and the borrower can reduce their rate by up to 1.5%.
Did you know that mortgage interest rates are at a 40 year low?