Fixed Rate Loan 

This mortgage product has an interest that will not change over the life of the loan. Homeowners enjoy the comfort and security of a constant monthly payment. We offer fixed rate loans up to $1,000,000 with terms of 10, 15, 20, 25 and 30 years. Jumbo loans (typically over $417,000) are also available. 

Adjustable Rate Loan 

This mortgage product allows for the interest rate to adjust periodically, up to certain limits, over the life of the loan. Usually, ARM loans initially offer a lower interest rate and monthly payment than a fixed rate loan, which can mean that you may qualify for a higher loan amount. We offer adjustable rate products with interest rate change periods of 6, 12, and 24 months. 

Should I Refinance? 

The old rule of thumb used to be that if the current interest rate is 2.00% less than your current rate, it is time to refinance -  this is no longer true.  Now, the rule of thumb is that if the cost of refinancing can be made up in monthly savings in 2 years or less, it's time to refinance.  Of course, other options are always available - to pay off higher rate equity loans, credit cards and installment debts would factor into this equation as well.  

Conforming Loan 

Sometimes called a Conventional Loan.  This type of loan usually has the lowest interest rate and is for the borrower that generally has a very good credit history.  Typically, a borrower that pays a mortgage more than 30 days late would not qualify for this type of loan.  These loans are underwritten to standards set by Fannie Mae and Freddie Mac. 

Non-Conforming Loan 

This type of loan is for borrowers that have a "less than perfect" credit history.  This type of loan carries a higher rate of interest because of the higher risk factors.  Mortgages can be approved for borrowers that have been in bankruptcy, have charge-off accounts, have accounts in collections or have serious delinquency on mortgages, credit cards or installment debts.  These loans are underwritten to both private and commercial investment guidelines.  Loan To Value ratios are generally lower on this type of loan. 

Loan To Value Ratio 

Also called LTV.  This is simply the percentage of the amount borrowed to the appraised value of the property.  As an example, if you borrow $75,000 on a property worth $100,000, the LTV would be 75%.  Certain property types have restricted LTV's. 

Debt To Income Ratio 

Also called DTI.  This is the percentage of your income that goes to the payment of debts.  As an example, if your gross monthly income is $4,000 and your total monthly debts are $1,500, your DTI is 37.50%.  Conforming loan programs typically limit the DTI ratio to 36% of gross monthly income.  Non-Conforming loan programs typically limit the DTI ratio to 45% to 50% of gross monthly income. 

Prepayment Penalty 

This term is used when your mortgage will require an "extra" payment in the event that you pay off your mortgage before it matures. Prepayment Penalties can vary widely, depending on the property state and lien position (first, second or lower). 

Balloon 

This term is used for mortgages that become payable in full at a specific date. Sometimes mortgage payments are calculated based on a 30 year loan term, but the mortgage "balloons" in 15 years. The longer the length of time the payment is calculated over (amortization term), the lower the monthly payment is. This type of mortgage allows you to have a smaller monthly payment. 

Points 

This is the amount of fees, expressed in percentage points, that you will pay to the lender for the mortgage loan. On a $100,000 mortgage, 1 point will equal $1,000. 

Closing Costs / Fees 

This is an "all encompassing" term used to group all other fees that you will pay in connection with your mortgage. The following costs and fees are standard in mortgage loans: 

Title Policy Fees
Appraisal Fees
Credit Report Fees
Recording Fees
Flood Certificate Fees
Document Preparation Fees
Attorney Attendance Fees

Pre-Approval 

This term is used for a borrower that wishes to know the maximum amount of a mortgage that can be obtained. This is useful for the purchase of a property, since the borrower already knows the price range that is affordable. A Pre-Approval is not a commitment to lend, just an estimate based upon information supplied and a credit report.