Island Dreams, Affordable Means
Meeting Your Financing Needs
Fixed Rate Mortgage
A fixed rate mortgage gives you the peace of mind that comes with knowing exactly what you will pay every month over the life of your loan. Once you lock in your interest rate, it never varies, protecting you from the fluctuations of the housing loan market. If rates happen to drop below your current loan rate, you have the option of refinancing your home to reduce your monthly payments.
When you opt for a 30 year fixed rate mortgage, your payments are stable and affordable. This is the traditional loan form, and it is still a popular option, especially among first-time borrowers. Additionally, without an adjustable rate, loan terms are easy to understand. If you don’t mind making higher monthly payments, a 15 year fixed rate mortgage lets you pay off your loan in half the time. Not only is the road to full homeownership shorter, but you also get the benefit of lower interest rates. Furthermore, you pay out less in interest overall because you have fewer years on your loan.
Adjustable Rate Mortgage
Your dream of owning a luxury home can become a reality. Jumbo loans give you the freedom to acquire home financing outside the areas conforming limits used by Fannie Mae- or Freddie Mac-backed conventional loans. Potential buyers who meet the eligibility requirements can enjoy the opportunity to borrow enough funds to finally attain significant life goals like purchasing the home of their dreams.
We at 101 Home Loans know finances are not a one-size-fits-all product; there are several home loan options. Our knowledgeable professionals can provide you with the details you need to decide the best choice for your lifestyle. You can choose between fixed-rate, adjustable-rate, and interest-only mortgages just as you can with conventional loans. Jumbo loans will sometimes even provide highly-qualified buyers with unlimited borrowing availability. You may also have additional possibilities, such as enrolling in a program with a >80% LTV with no mortgage insurance needed, with a maximum LTV of 90%.
With an ARM, you can typically choose between a 5/1, 7/1 or 10/1 loan. The first number correlates with the number of years you receive a fixed rate. The second number indicates how many times a year the interest rate can change. With a 10/1 mortgage, your interest rate remains the same for the first 10 years of your loan. Each year after that, you may see an adjustment to the rate you pay once per year. You can choose a loan that places a cap on how high your interest rate can go annually or over the loan’s life.
Jumbo Loan
Your dream of owning a luxury home can become a reality. Jumbo loans give you the freedom to acquire home financing outside the areas conforming limits used by Fannie Mae- or Freddie Mac-backed conventional loans. Potential buyers who meet the eligibility requirements can enjoy the opportunity to borrow enough funds to finally attain significant life goals like purchasing the home of their dreams.
We at 101 Home Loans know finances are not a one-size-fits-all product; there are several home loan options. Our knowledgeable professionals can provide you with the details you need to decide the best choice for your lifestyle. You can choose between fixed-rate, adjustable-rate, and interest-only mortgages just as you can with conventional loans. Jumbo loans will sometimes even provide highly-qualified buyers with unlimited borrowing availability. You may also have additional possibilities, such as enrolling in a program with a >80% LTV with no mortgage insurance needed, with a maximum LTV of 90%.
FHA Loan
The Federal Housing Authority (FHA) provides people who don’t qualify for a traditional loan a way to purchase a home. The federal government backs an FHA loan, insuring the mortgage payments against default. Approved lenders are protected from the risks associated with approving loans for people who can’t make a sizeable down payment or have lower credit scores. As a borrower, you are responsible for paying an annual premium for the insurance the government provides.
An FHA loan makes buying a home more affordable for many, and it is a popular option for a wide range of homebuyers. With this type of loan, the down payment is much lower than the typical 6-20% that is required in a traditional loan.
VA Loan
VA loans are practical solutions for military families looking to buy their first home or wanting to refinance an existing mortgage. This type of home loan offers great benefits to military borrowers, such as lower interest rates and protection from default. The VA loan is guaranteed by the U.S. Department of the Veteran Affairs and is only available to service members.
VA loans were designed to help veterans and activity duty military members purchase homes. (Certain surviving spouses of veterans may also be eligible for a VA loan.) As a service member, you may not need a down payment (depending on the value of the home,) and you may get by without the added cost of private mortgage insurance. Your closing costs are limited and could be paid by the seller. There are no penalty fees when you pay off the loan early. If you struggle to make payments, you may be eligible for help from the VA.
HELOC
Home equity lines of credit give you the flexibility of using the value of your home to get the credit you need. Equity is based on the difference between the home’s worth and what you owe on the mortgage. A HELOC is secured by the collateral in your home, so you get access to cash that works like a credit card. You withdraw the funds you require based on the revolving credit line. Many HELOCs come with fixed interest rates, so you know how much you will pay back.
A home equity line of credit has designated draw and repayment times. Draw periods last between 5 to 10 years and allow you to make the minimum payment (sometimes interest only), though you can pay on the principal during this time. Once the draw period ends, you enter repayment. At this time, you no longer have access to the credit line, and you begin making monthly payments on the principal and interest that you borrowed.