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Loan Types
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Please scroll down to
see all loan types at once
BI WEEKLY PAYMENTS, PRIMARY RESIDENCE, VACATION SECOND
HOMES & INVESTMENT PROPERTY:
$10,000 minimum loan, no maximum loan. Bi-weekly payment
plans available. This payment plan can cut your mortgage
term from 30 years to just 23 years saving you literally
thousands of dollars. One half of a mortgage payment is
automatically drafted from your account every other
Friday. Every two weeks is not the same as twice a
month. There are fifty-two weeks in a year, therefore you
make thirteen mortgage payments in a year instead of
twelve in a very painless sort of way. This payment plan
is available on any loan product we sell. Also, this may
be added to any mortgage program after it closes, even
if we did not originate the loan to begin with.
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30,20,15 & 10 YEAR FIXED RATE:
or anything in between. You tell us the number of years
and we'll tell you what you will pay each month. Tailor
make your own loan to your specifications. Rates are
fixed the entire life of the term.
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30,20,15 & 10 YEAR FIXED RATE WITH A 2/1 BUYDOWN:
A 2/1 buydown means you give the bank 3 points and they
slowly dole it back out to you. Say the rate is 7.5%
with a 2/1 buydown, you buydown the rate 2% to 5.5% in
the first year and 1% to 6.5% in the second year. There
is nothing magical about it. They are giving you back
your own money. The key is that you qualify based upon
the first year's rate, meaning you can afford more of a
house based upon the same amount of income, all things
the same. From 5-10% down depending on loan program.
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30 YEAR FIXED RATE AND ADJUSTABLE RATE FHA LOANS WITH
AND WITHOUT BUYDOWNS.
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30 YEAR FIXED RATE VA LOANS WITH AND WITHOUT BUYDOWNS.
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1 YEAR ADJUSTABLE RATE MORTAGE (ARM):
This is a loan program where the rate is fixed for only
one year at a time. Generally they have 2/6 caps which
means the maximum the rate can change is 2% above (or
below) the previous year, and 6% over the entire life of
the loan. Usually these loans have a teaser rate in the
first year, meaning the first year is a really low rate
just to get you in. These loans will tend to go up and
up and up. The rate is calculated each year by taking
the index (let's say the 1 year T-bill in this case, but
it can be anything including, the 6 month LIBOR , COFI,
etc) and adding the margin, say 2.75. If the one year
t-bill is 5.5% today and your margin is 275(margins vary
by loan program), then your rate would want to go to
8.25% But it can't because you have a 2% cap per year.
In this example, your rate would only go up to 7.5% in
the second year. If rates stayed the same the year after
that, your rate would go to 8.25%, the fully indexed
rate now, but it could go as high as 9.75% if rates went
up. This type of loan is good if you will be living in
the house 1-2 years. The average rate over two years,
even assuming the maximum adjustment, will usually work
out to average less than a 3/1 ARM. and sometimes a 2/1
ARM. 5-10% down depending on the loan program. It can
get confusing, can't it? Don't worry, we can help you
choose the best program for your situation - call or
e-mail us today.
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1 YEAR CONVERTIBLE ARM:
This works the same as a 1 year ARM but gives you a
window of opportunity. Between the 13th and
the 60th payment you can convert to a 30 year
fixed rate at a minimal charge, thereby saving you the
cost of refinancing. This program is great for people
who are not sure if they will be selling soon or may end
up staying, but will know within the next five years.
This way, if they leave, they have had the benefit of a
real low rate and saved a bunch of money. If they decide
they are staying, then they can covert to a 30 year
fixed and not take the risk with an adjustable loan.
5-10% down depending on the loan program.
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2/1 ARM:
This is an ARM where the rate is fixed for the first 2
years, then changes to a 1 year ARM. This is a new
product and is good for a 1-2 year scenario. Also, for
some C-D loans, this is perfect as typically banks want
to see 1-2 years of clean credit before giving you an
"A" rate on a refinance. 5-10% down depending on the
loan program.
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3/1 ARM:
This is an ARM where the rate is fixed for the first 3
years, then changes to a 1 year ARM. This is good if you
will be living in the house 3-4 years. 5-10% down
depending on the loan program.
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3/1 CONVERTIBLE ARM:
This is the same as the 3/1 ARM but gives you a window
of opportunity between the 13th and the 60th
payment to convert to a 30-year fixed rate at a minimal
charge. 5-10% down depending on the loan program.
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3/1 ARM WITH A 2/1 BUYDOWN:
This is an ARM where the rate is fixed for the first 3
years, then changes to a 1 year ARM. But with the
buydown, you buydown the rate 2% in the first year and
1% in the second year. With the 3/1 Arm rate already so
low to begin with, add a 2/1 buydown feature to this
program and you can afford to buy a lot more house. A
terrific program if you are stretching to qualify. 5-10%
down depending on the loan program.
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5/1 ARM:
This is an ARM where the rate is fixed for the first 5
years, then changes to a 1 year ARM. This is good if you
will be living in the house 3-5 years. 5-10% down
depending on the loan program.
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5/1 CONVERTIBLE ARM:
This is the same as the 5/1 ARM but gives you a window
of opportunity between the 13th and the 60th
payment to convert to a 30-year fixed rate at a minimal
charge.
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5/1 ARM WITH A 2/1 BUYDOWN:
This is an ARM where the rate is fixed for the first 5
years, then changes to a 1 year ARM, but with the
buydown, you buydown the rate 2% in the first year and
1% in the second year.
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5/25 BALLOON:
This is a fixed rate for 5 years, then it adjusts one
time and is fixed for the next 25 years. Some conditions
apply to get the next 25 years. The rate is usually
substantially lower than a 5/1 ARM. This loan requires
20% equity. This is good if you will be living in the
house 3-5 years.
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5/25 BALLOON WITH A 2/1 BUYDOWN:
This is a fixed rate for 5 years then it adjusts one
time and is fixed for the next 25 years, but with the
buydown, you buydown the rate 2% in the first year and
1% in the second year. Some conditions apply to get the
next 25 years. This loan requires 20% equity.
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7/1 ARM:
This is an ARM where the rate is fixed for the first 7
years, then changes to a 1 year ARM. This is good if you
will be living in the house 5-7 years. 5-10% down
depending on the loan program.
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7/1 CONVERTIBLE ARM:
This is the same as the 7/1 ARM but gives you a window
of opportunity between the 13th and the 60th
payment to convert to a 30-year fixed rate at a minimal
charge.
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7/1 ARM WITH A 2/1 BUYDOWN:
This is an ARM where the rate is fixed for the first 7
years, then changes to a 1 year ARM, but with the
buydown, you buydown the rate 2% in the first year and
1% in the second year.
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7/23 BALLOON:
This is a fixed rate for 7 years then it adjusts one
time and is fixed for the next 23 years. Some conditions
apply to get the next 23 years. The rate is usually
substantially lower than a 7/1 ARM. This is good if you
will be living in the house 5-7 years. This loan
requires 10% equity.
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7/23 BALLOON WITH a 2/1 BUYDOWN:
This is a fixed rate for 7 years then it adjusts one
time and is fixed for the next 23 years, but with the
buydown, you buydown the rate 2% in the first year and
1% in the second year. Some conditions apply to get the
next 23 years. This loan requires 10% equity.
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10/1 ARM:
This is an ARM where the rate is fixed for the first 10
years, then changes to a 1 year ARM. This is good if you
will be living in the house 7-10 years. 5-10% down
depending on the loan program.
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10/1 CONVERTIBLE ARM:
This is the same as the 10/1 ARM but gives you a window
of opportunity between the 13th and the 60th
payment to convert to a 30 year fixed rate at a minimal
charge.
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10/1 ARM WITH A 2/1 BUYDOWN:
This is an ARM where the rate is fixed for the first 10
years, then changes to a 1 year ARM, but with the
buydown, you buydown the rate 2% in the first year and
1% in the second year.
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PRE-PAYMENT PENALTY:
Some of the above loans may feature the option of a
pre-payment penalty. Some investors take up to three
years to break even on a loan. During the refinance
craze, people were refinancing so often that
approximately .25% of the rate on most loans is due to
this early turnover they would expect. Therefore, on
some loans you may actually get a .25% better rate if
you promise not to pay off more than 20% of the
outstanding balance for the first 3 years. After that,
you may pay as much as you want without penalty. The
penalty is 2% of the amount over 20% you prepay the
loan, i.e., a $200,000 loan may be repaid $40,000 in
each year for the first 3 years without penalty. But, if
you paid down $41,000, the penalty would be 2% of
$1,000, or $20.
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ONE CLOSING CONSTRUCTION AND PERMANENT LOANS:
A 6-month land acquisition and construction loan
providing funds to build your own home. The construction
loan then rolls into a 30-year loan at no additional
charge.
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HOME EQUITY & FIXED RATE SECOND MORTGAGES TO 125%:
Rates vary depending on credit, income, etc. Great for
debt consolidation, home improvements, or anytime you
need to take equity out for any reason. Same tax
deductibility as any other type of mortgage. Lines of
credit are reusable.
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BRIDGE LOANS:
Used in conjunction with selling your old home and
buying a new one. Allows you to pull the equity out of
your existing home before it sells.
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97% COMMUNITY HOMEBUYER:
3% down. Income must not exceed certain regional income
limits. Qualifying ratios expanded to 33/38 . Clean
credit a must.
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LAND PURCHASE LOANS:
Terms are a year balloon with a 25-year amortization.
Must be a buildable lot. 20% equity required.
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75% " NO JOB REQUIRED" LOANS:
Rates vary depending on size of down payment and credit.
All credit types considered. Restricted to certain
geographical areas. No questions asked about your
employment or where the down payment money came from.
Foreign nationals okay. Cash business owners okay.
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PLUS MANY, MANY MORE!
Just because you don't see it here, it doesn't mean we
don't have it or it doesn't exist. There is not enough
room on the entire Internet to describe all the possible
loan programs and borrower profiles available. Contact
Carteret now and we can help you choose the best program
for your situation.
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