Loan Program Descriptions

 

All of the following loan programs do NOT contain any pre-payment penalties.

 

-- This type of loan is recommended if you plan to sell the property 12 + years, or you believe there exists an increasing or neutral interest rate environment.

You can opt to have this type of loan amortize on a 25-year or 20-year basis. The pricing has been very similar to that associated with the 30-year fixed. Because the price incentive is small or insignificant, you can easily accomplish the same objective (paying off your loan earlier) through regular prepayments. Be sure to ask about the current pricing "spread."

New Fanniemae HomeReady Program

-- This type of loan is popular for those interested in refinancing and those whose primary objective is to payoff the loan as soon as possible, thus saving a boat load of interest over the life of the loan. For purchasers, this type of loan is recommended if you are planning to own the property 12+ years, and you feel comfortable handling the ~ 25-30% higher payment.

 

  1. You must still be the owner and OCCUPANT of the property
  2. There must be no "junior" liens against the property, such as a home equity loan/line.
  3. In the preceding 12 months, you did not make a 30+ day late payment on the mortgage
  4. The reset interest rate cannot be more than 5.0% above your start rate.

If any of these conditions are not satisfied at the end of year 7, the loan "balloons." You must payoff the loan. Of course, you can always refinance.

-- This type of loan is recommended if you feel you will own the property 4-7 years.

 

-- This type of loan is recommended if you feel rather confident in owning the property 3-5 years.

 

-- This loan program is recommended if you feel that you will own the property for 6-12 years.

 

-- These loan programs are recommended if you feel that you will own the property before the initial adjustment takes place. These loans are popular with relocation clients and with clients who believe interest rates will be declining in the future.

 

-- This loan is recommended in very particular circumstances such as a very temporary relocation client, a client who feels interest rates are going to be dramatically reduced, or investor purchasers who have some sort of cash-flow motivation.

 

 

 

Feel free to call our office for a more in-depth discussion about the various 
loan programs or other loan programs you may have seen or heard about.

 

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PA Dep't of Banking
License #20481

NMLS Originator
ID #135687


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