When it comes to home mortgages, the options are plenty. I understand the mortgage process can be intimidating and the options overwhelming. My team and I will work closely with you to insure that we have helped you to determine which mortgage option is best for you and will best suit your long term financial goals. Here are some general mortgage options with an explanation on how each works.
Fixed Rate Mortgages:
Fixed rate mortgages are loans where the interest rate for your mortgage stays the same for the entire term of the loan. Fixed rate mortgages are available in 10, 15, 20, 25, 30 and 40 year terms. Generally, the longer the term of the loan the higher the interest rate. Fixed rate mortgages are great loans for clients who anticipate staying in their home for a longer period of time. With a fixed rate mortgage your interest rate and principal and interest payment will never change.
Adjustable Rate Mortgages (ARM):
Adjustable rate mortgages are loans where the interest rate on your mortgage is subject to change at some point during your loan term. Adjustable rate loans are available with repayment terms of 30 years in most cases. However, the interest rate on your loan may only be fixed for a period of 1,3,5, 7 or 10 years depending on the option you choose. For clients who will be staying in their home for a shorter period of time an adjustable rate may offer a lower payment and interest rate. An ARM may also benefit you if fixed rates are higher and you anticipate mortgage rates to drop within the next couple of years. This allows you to keep your payment reasonable while you wait for fixed rates to decrease.
Balloon Mortgages:
Balloon mortgages are loans that generally carry an interest rate lower than a fixed rate mortgage. With a Balloon mortgage you have a 7 year term in which to pay your loan off in its entirety or to refinance. Balloon mortgages have low monthly payments because your monthly payment is calculated over a 30 year term. However, at the end of 7 years you will have to payoff your outstanding balance at that time or refinance. A balloon option is good for clients who will be moving within 7 years or those who are betting mortgage rates will be decreasing during the next 7 years.
First Time Buyer Programs:
First Time Buyers have numerous options available to them. Many of these options allow for little to no down payment. To find out which program best suits you please call our office to set up a complimentary appointment to review your home buying options. Often times there are numerous options that are available to you. We will help you to determine the options that will best fit your needs. In addition we are pleased to participate with the Michigan State Housing Development Authorities Home Loan Programs as well as FHA and VA home loan programs. Some of these programs offer substantially below market rates to first time home buyers. Call us for all of the details.
Executive (Jumbo) Mortgages:
Executive loans are mortgage loans in excess of $417,000. These loans typically range from $417,001 to $2 million dollars. Like construction loans, these products can vary significantly from lender to lender. We are pleased to be a leading provider of executive mortgages. Because of our affiliation with First Place Bank we are able to hold in our investment portfolio several large executive mortgages at extremely competitive rates (often times equal to standard conventional rates). We offer executive mortgages under our fixed and adjustable rate products. In addition, as a direct lender we have greater flexibility with programs and options.
Lot – Vacant Land Mortgages:
At First Place Bank, we are one of the most aggressive lenders for lots and vacant land. Most of our land loan programs are available with as little as 25% down. Lot and land loans have a repayment term as long as 30 years, with your rate being fixed for the first 5 years. If you have not started construction within the first 5 years, you would be required to refinance your loan at the end of the 5 year period. Lot-Vacant Land loans are meant to be short term (5 years or less). Once you start construction on your new home and take out a construction loan, we will payoff the lot loan with a portion of the construction loan.
Investment Property Mortgages:
With our wide product offerings we are able to offer financing on 1-4 unit properties. Down payment and options will vary depending on credit, number of units and number of properties currently owned. Our investment property options are available as fixed or adjustable rate products. Investment property options are generally limited to 1-4 unit properties. However, larger units and/or apartment complex financing is available through our commercial lending area. Because investment property options can vary widely from one client to another, I strongly suggest you call our office to determine your options.
Bridge (Swing) Mortgages:
These mortgage options are used when you currently own a home and need to close on the purchase of a new home before you close on the sale of your current home. Our bridge loan options may allow you to borrow up to 80% of your current homes value for your down payment on your new home. Best of all there are flexible payment options that allow you to make interest only payments monthly or quarterly depending on the option you choose. Bridge/Swing loans are limited to very strong borrowers who have the ability to qualify for a mortgage with payments on both homes. In addition, borrower intending to do a bridge loan should also be able to show significant financial reserves after closing on the new home.
FHA/VA Home Loans:
First Place specializes on FHA/VA home loans and is one of the few banks with a Government Loan Underwriter in our office here in West Michigan. This means your loan is approved locally by someone who knows and understands this market. FHA/VA loans have flexible down payment options with many require no down payment. Best of all you don’t have to have perfect credit for many of these programs. If your looking at purchasing a home that is need of repairs, the FHA 203(k) program may be perfect for you. This option allows for repairs ranging from $5,000 to $35,000 to be included in the purchase of your home. To find out if this option is right for you, give us a call.
NO PMI Options:
We are pleased to offer mortgage options that allow for NO PMI (Private Mortgage Insurance). These options are available on our fixed, adjustable and balloon mortgages. NO PMI options are available with loans that require anywhere from 5 to 15% down. Eliminating PMI insurance may save you a substantial amount on your monthly payment and may save you thousands of dollars over the term of your loan. Contact our office to find out what options you may qualify for.
Special Programs:
We are pleased to offer special programs for first time buyers as well as buyer who may have owned numerous homes before. Here is a sample of some of our special programs:
- NO Debt Ratio Loans (Income still verified but no debt ratio is calculated in order to qualify)
- Interest Only Payment Options
- Self Employed less than 2 years
- Down Payment Assistance Programs
- First Time Buyer Programs
- Unique Property Programs
- Common Sense Programs
- Condominium Financing for recently built projects
If you have a special or unique situation contact our office to discover the many options that may be available to you.
Interest Only Mortgages:
We are pleased to offer a number of mortgage options that allow for payments interest only. These options allow you to have a monthly payment that can be hundreds of dollars less than a traditional mortgage. Best of all, you are able to maximize the amount of home you are able to finance without having to have a large mortgage payment. These options are also great for clients who work on commissions or that are self employed. With our interest only mortgages your payment of principal is deferred to a later date. Interest Only mortgages are available on fixed rate as well as most of our adjustable rate programs. Additionally, we offer interest only mortgages on some of our investment property programs. Please contact us for all the details.
