Mortgage Solution Center - Home Mortgage

Mortgage Solution Center

67866 Alexandria Ct
Desert Hot Springs, CA 92240
Ph: 760-880-8667

Loan Programs

There are many loan programs to fit almost any need. Please call and ask which loan program best fits your situation.

What are the Basic Loan Types

There are many loan products designed to meet the borrowers individual criteria. Most of these products fall into a few basic loan types.

15-Year and 30-Year Fixed Rate
Payment and rate stay the same from start to finish plus tax

Payment Advantage and Pay Option Arm

Lower start rate. Payment could be hundreds lower than current payment. There are normally four payment options as follows:

1. Minimum payment rate (.25% etc) 2. 30 year interest only payment
3. 30 year fixed fully amortized payment. 4. 15 year fixed fully amortized payment.

Adjustable Rate Mortgage (ARM)
Lowest start rate Adjusts either every 6 months or
every 12 months depending on program and grade and is based on the
economy 6% ceiling for prime and 7% ceiling for sub-prime.

5/1 and 7/1 Fixed Rate
Rate is fixed for the first 5 or 7 years, then shifts to an adjustable rate mortgage (ARM).

2/28 and 3/27 ARM
An ARM program that is fixed for the first 2 or 3
years, then shifts into a 6 month adjustable rate mortgage. It is a
sub-prime program giving you a rate lower than the sub-prime 30-year
fixed, and if you have had credit problems, it allows a window of time
for credit rebuilding and seasoning. You will then want to refinance
this loan.

Which Program is best for me?

Here are a few things to keep in mind when selecting a loan program.

15-Year and 30-Year Fixed Rate
Advantages:
Maximum interest deduction for taxes, sometimes
easier to qualify, stable predictable payments, high loan to value,
lower down payment, possible secondary financing if needed.

Disadvantages:
Pay more interest over the life of the loan, higher
starting interest rate, Lower debt ratio (Larger Income to qualify)
Higher monthly payment.

Payment Advantage and Pay Option Arm
Advantages:
owest starting interest rates! Great for individuals with fluctuating monthly income such as in sales profession etc.

Disadvantages:
Periodic payment and rate increases. Minimum payment can build negative equity.

Adjustable Rate Mortgage (ARM)
Advantages:
Lower starting rate than 30 year fixed
great for refinancing from a higher rate use when you plan a move in
5-7 years Some are convertible to 30-yr fixed or a treasury ARM, low
fees, good rates.

Disadvantages:
Periodic payment and rate increases, builds equity Slower payment increases may affect budget.

5/1 and 7/1 Fixed Rate
Advantages:
No Rate Change in First Years Lower Starting Fixed Rates If You Plan to
Sell Within 3 - 7 Years Allows Budget Planning Can Give You Time to
Repair Credit

Disadvantages:
Rate Increases after Fixed Term Possible 6% Lifetime Rate Increase
Builds Equity Slower Loses Advantage After First Fixed Period Fixed
rates change to adjustable rate

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