What’s the best loan for you?
Loan Types
The 30-year mortgage program has become quite popular among the financing of a new home or refinancing an existing mortgage. The reason for this increase in popularity is knowing your rate is fixed for the life of the loan should you choose to keep it that way. Below are key points to consider when looking into a 30-year mortgage.
Payments are lower
Payments remain constant
Interest rate will not increase
Plan to be living in current home for more than 5 years
Easier to qualify
30 Year Fixed Mortgage
What is a jumbo loan?
A loan is considered to be jumbo (also known as non-conforming) if the amount of the mortgage exceeds $548,250 for a single-family home in all states set by the Federal Housing Finance Agency (FHFA) (except Hawaii and Alaska where the limit is $822,375).
Jumbo loans are available for primary residences, investment properties, second homes and come with the options for various different loan type products.
Jumbo Loan
Hard money loans are generally secured by real property and not financial position of the applicant. These types of loans are often time used as short-term bridge loans and, in some extremes, a last option.
At Elevate Lending, we have worked hard to establish and secure strong trusting relationships with hard money lenders in order to offer the best rates and the quickest processing times in the market.
Some key points to consider when applying for a hard money loan are:
The cost of hard money loans ten to be higher than that of a traditional mortgage loan
The process of being approved and funded with a hard money loan is shorter than that of a traditional loan process
Terms are often negotiated between the borrower and the private party lending funds
Possibilities in the flexibility in the repayment process
Hard Money Loan
A non-QM loan is a product to help those who are not able to meet the conventional loan guidelines. With a fluctuating income source and sometimes the inability to provide a standard W2, a non-QM loan can be just the solution. Similar in application process, the criteria for this loan product can apply to many self-employed individuals, business owners, investors, retirees, high debt-to-income and applicants with a little less-than-perfect credit.
Non-QM Loan
15 Year Fixed Mortgage
Much like the 30-year fixed mortgage, the 15-year mortgage is a loan product many consumers find to be more of a benefit and have some advantages when compared to the 30-year.
Lower interest rate (save more money over time)
Build equity more quickly (higher payments lower overall balance quicker allowing higher equity allowance)
Monthly payment will be higher (decrease principal faster)
Combat against the possibility of negative equity (fluctuating real estate value market)
ARM
(Adjustable Rate Mortgage)
With adjustable rate mortgages, the interest rate is set for a set period of time. This loan product is ideal for an individual seeking:
To lower monthly payments early in the loan term
Does not plan to stay in the residence for more than 5 years
Wants to save the difference in the lower payment for investments
Receives a significant increase in income allowing the opportunity to pay more towards principal or payoff the loan before rate adjustment