The following is a partial list of mortgage programs offered by my team and I at Constant Funding, Inc. For a complete list of programs that we offer, please contact me at 951.595.RICH. Constant Funding, Inc. will find the right home loan for you!
A common type of mortgage loan is the fixed rate mortgage. With this loan, your payments and interest do not change for the term of the loan. Fixed rate mortgages come in different packages. The most common is the 30-year fixed rate, although a fixed rate mortgage can range from 10 to 50 years.
Adjustable rate mortgages are loans where the interest rate is recalculated on a yearly basis depending on market values. As interest rates are adjusted, so is the borrower’s monthly payment. While interest rates on ARM loans are generally lower than fixed rate loans, they can eventually become higher. Various types of ARM loans include Hybrid ARM's such as 10/1 year, 7/1 year, 5/1 year and 3/1 year programs.
An FHA loan is a mortgage loan approved by a lending institution and guaranteed by the Federal Housing Administration. These loans have competitive interest rates and are most beneficial to those who may not easily meet the credit and down payment requirements of a conventional loan. FHA loans require a 3.5 percent down payment to qualify. Those who choose these loans are required to pay mortgage insurance which slightly increases their monthly payments.
A VA loan is provided through a lender, however, the federal government guarantees a portion of the principal. That means that the Department of Veterans Affairs backs the loan, so if the borrower defaults on it, the lender is protected. Borrowers who are eligible for a VA loan are permitted to have a small, or sometimes non-existent, down payment and still get a mortgage. When requesting a VA loan, you need a certificate of eligibility to show the lender.
Homeowners looking to decrease their interest rate may consider refinancing. A refinance calls for the homeowner to obtain another mortgage loan. Those funds are then used to pay off the original mortgage loan and the homeowner is then bound by the terms of the new mortgage. Depending on your situation a refinance loan could be a great option. Along with decreasing your interest rate, refinance loans can also help you switch from an ARM to a FRM, and in some cases reduce your loan term.
A jumbo loan is a loan with a loan amount larger than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Currently the limit is set at $417,000 for most areas. Special areas such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands have a higher limit of $625,000. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate; usually .25% to .50% higher than that of a conforming loan.
Home equity loans call for the borrower to acquire a new loan on an already mortgaged property by using the equity in the home as collateral. Home equity loans are typically used to pay down medical or consumer debt, start a business or pay tuition. Most states restrict the amount of money one can borrow against their home. Interest rates on home equity loans are generally higher than conventional loans.
Please contact me anytime if you have questions about a particular loan program. You can reach me at 951.751.2105
"I am very grateful that you took the time to visit my mortgage site. Please call me anytime if there is anything I can do to help you with your home loan.” - Rich
