TYPES OF LOANS
Fixed rate loans have a fixed interest rate over the life of the loan, e.g. 15-30 years.
They are broken into three basic categories. Conforming, up to $417,000, High Balance Conforming up to $625,500 (maximum loan amount is determined county by county) and Jumbo, in excess of $625,500. Conforming interest rates are generally lower than High Balance and Jumbo and require complete income, asset and credit documentation. It should be noted that conforming loan amounts can be funded on Jumbo pricing according to the Jumbo loan's underwriting guidelines.
Some fixed rate programs are available with an initial interest only period, usually 5-10 years. After the interest only period, the loan re-amortizes over the remaining term of the loan.
Rate Loans or ARMs
Variable rate loans provide terms where in the interest rate/payment can adjust at predetermined intervals over the life of the loan. There are always rate adjustment caps, which provide limitations that protect the borrower from excessive payment adjustments.
Traditional variable rate loans have a variety of introductory periods ranging from 1 month to 10 years. Interest only ARM programs are available. Generally speaking, the interest only period corresponds with the introductory rate period, and then is amortized over the remaining term of the loan.
Variable rate loans are generally written with a term of 30 years.
These loans have either interest only or amortized payments. At some pre-specified point in time the remaining principle balance is all due and payable.
Loans secured by stock in a Residential Stock Cooperative or an Ownership Certificate in a common interest subdivision. Both fixed and variable rate loans can be available.
Apartment Owners Association Loans
Better known as Own-Your-Own Apartments, are limited at this time to Variable Rate loans.
Single close, or permanent construction loans are one of our specialties. These loans can be fixed or variable rate loans. There is one closing that covers the construction of the property and fully amortized permanent loan.