by
Carl Hampton
08/04/2006
Details on our most popular loan programs
are just a click away.
Fixed Rate Mortgages
The most common type of mortgage program
where your monthly payments for interest and
principal never change.
Adjustable Rate Mortgages (ARM)
These loans begin with an interest rate that
is lower than a comparable fixed rate
mortgage, but the rate changes at specified
intervals.
Standard ARMS and the Differences
Choosing an ARM with an index that reacts
quickly lets you take full advantage of
falling interest rates.
Introductory Rate ARM's
Most ARM's have a low introductory rate,
which is good anywhere from 1 month to as
long as 10 years.
Reverse Mortgages
A Special type of loan made to older
homeowners to enable them to convert the
equity in their home to cash to finance
other needs.
London Inter Bank Offered Rate (LIBOR)
LIBOR is the rate on dollar-denominated
deposits, also know as Eurodollars, traded
between banks in London.
Balloon Mortgages
Short term mortgages that have some features
of a fixed rate mortgage.
Interest Rate Buydowns
The buyer would pay points above current
market points in order to pay a below market
interest rate during the first two years of
the loan. At the end of the two years they
would then pay the old market rate for the
remaining term.
Cost of Funds index (COFI)
The ratio of the dollar amount paid in
interest during the month to the average
dollar amount of the funds for that month
constitutes the weighted average cost of
funds ratio for that month.
Graduated Payment Method (GPM)
With a GPM the payments are usually fixed
for one year at a time.
Choosing The Best Program
The right type of mortgage for you depends
on many different factors.
