Fixed Rate Mortgages are a mortgage on which the interest is set for the term of the loan. Fixed rate mortgages guarantee a specific rate of interest for a set length of time. Most commonly, this is for between one and five years, though it can be as long as ten or even fifteen years. As a rule, the longer the fixed period, the higher the starting rate of interest.

A lender will not want to commit to lending you money at a really low interest rate for ten years when there is a fair chance that during that period the general level of interest rates may rise above the rate at which they are lending you money. The lowest interest rates are often found with deals that are fixed for two to three years.

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Adjustable Rate Mortgage

An adjustable rate loan can be a useful tool when fixed rate loan rates begin to rise. In recent years, many lenders have introduced some vary creative programs which can give you an opportunity to actively manage your loan payments.

Adjustable rate loans have a rate that is fixed for a specific period of time and then begin to adjust periodically. When evaluating any adjustable rate loan there are several things in addition the rate that you will need to evaluate.

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Balloon Mortgages

Are you considering buying a home or refinancing, and curious about your options? A Balloon Mortgage can be an excellent option if you are looking for a lower interest rate and believe that you will be in a home for a defined period.

In general, Balloon Mortgages have fixed rates and terms of 5 or 7 years. However, when the term expires, a final, large balloon payment is due to pay off the loan balance.

With this type of option, the interest rates are lower than on a 30-year Fixed-Rate Mortgage, allowing a borrower to qualify for a larger home because of the lower interest rate - and therefore the lower monthly mortgage payment - is lower.

Balloon Mortgages can be great options if you expect to refinance before the balloon payment is due, feel that interest rates will decline in the future, or if you think that you might be selling your home in the near future. Let us help you discover if this is the right option for you!

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Stated Income Programs

Stated Income Mortgages are the most commonly used and least expensive product in the reduced or no documentation suite of programs. A Stated Income Mortgage Loan is often the perfect choice if you have verifiable employment (self employment is fine) and assets. Income that is stated on the application must be reasonable in terms of your occupation and assets.

The Stated Income Mortgage is the least expensive reduced documentation product if it works for you. If not, a No Ratio or true No Doc mortgage but may be a better choice. The point is, with decent credit, we can guide you to the least expensive program which will work in your specific situation. Stated Income Mortgage Loans are available for Single Family, Townhouse, some manufactured housing, and low rise condos. Some programs allow high rise condos 2-4 unit buildings, second homes, or investment properties but are slightly more expensive or require more equity. Allowable uses are for purchase or rate and term refinance. The programs will allow a "cash out" refinance but there are limitations on the allowable cash back.

The fundamental thing to keep in mind with true NO Doc Mortgages is that the lender only has your credit profile and property to evaluate. If your situation allows verification of either employment or assets you will save some money because you have lowered the lenders risk.

The choice is yours.

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Imperfect Credit Programs

Imperfect Credit Mortgage - Getting a mortgage with imperfect credit scores is possible in the 'sub-prime' mortgage market. Sub prime lending offers different types of mortgage and other loans to borrowers who have imperfect credit. The sub prime market saw an explosive growth in the 1990s. Some lenders offer homeowners with impaired credit a credit card that is secured by the equity on the home. The rationale behind such an action is that if they use the credit card responsibly, the homeowners could repair their credit ratings. There are other lenders who aggressively market imperfect credit loans in the form of checks that can be cashed to activate the credit line. Because people now have improved access to credit, homeownership is high, and the number of mortgage loans given to low and moderate-income families is increasing.

Sometimes, unscrupulous imperfect home loan lenders trap unsuspecting borrowers in excessively costly imperfect credit mortgages with abusive terms and conditions. Predatory lending costs borrowers approximately $9.1 billion dollars each year.
To repair imperfect credit, borrowers must follow the steps given below:

• Ensure that the credit file is accurate. Review the credit report for outdated information. The borrower must take immediate steps to correct the mistakes in the report.
• Making payments towards the debt (either partially or fully) may persuade creditors to remove derogatory information from the credit file.
• Start repaying outstanding balances on time.
• Documents that prove the borrower's stability must be sent to the credit bureau. Long-term employment, statements that show timely payment history could be added to the file.
• Secured credit cards and loans are another way of building good credit.
• Any unpaid items such as judgments, liens and collections against the borrower must be satisfied.

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Home Equity Fixed Loan

There are two types of home equity loans: term, or closed-end loans, and lines of credit. Both are sometimes referred to as second mortgages, because they're secured by your property, just like your original (first) mortgage.

Home equity loans and lines of credit are usually for a shorter term than first mortgages. The most common type of mortgages runs 30 years, while equity loans typically have a life of five to 15 years.

A home equity loan, sometimes called a term loan, is a one-time lump sum that is paid off over a set amount of time, with a fixed interest rate and the same payments each month. Once you get the money, you cannot borrow further from the loan.

A home equity line of credit (HELOC) works more like a credit card. You are allowed to borrow up to a certain amount for the life of the loan -- a time limit set by the lender. During that time you can withdraw money as you need it. As you pay off the principal, your credit revolves and you can use it again. Let's say you have a $10,000 line of credit. You borrow $5,000, but then pay back $3,000 toward the principal. You now have $8,000 in available credit. This gives you more flexibility than a fixed-rate home equity loan.

Credit lines have a variable interest rate that fluctuates over the life of the loan. Payments will vary depending on the interest rate and how much credit you have used. When the life span of a line of credit has expired everything must be paid off.

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