Mortgage Loan Types
Loan
Types
-
Purchase
Loan
-
Refinance
Loan
-
Home
Equity Loans
-
ARMs
- Adjustable Rate Mortgages
-
Save
Me Loans!
Purchase
Loans
Purchasing
a home is one of the greatest and most fulfilling
accomplishments in ones life. The tax benefits of home ownership
truly make it the American Dream. If you are first time home
buyer or someone who is looking to purchase their next home we
have a variety of loan programs to meet your needs. Follow these
simple steps to buy a home and find loan types below:
Home
Buying Process
-
Determine
your budget - How much home you can afford
-
Get
Pre-Approved with us for your Loan (Call 1-866-854-9961)
-
Decide
what are the "must haves" in your new home
-
Search
for your home
-
Make
an offer on it (Fax the paperwork to us)
-
Lock
in your interest rate
-
Close
your loan
Types
of Loans
Conventional
Loans
These
are traditional loans that are not insured by the government and
they come in a large variety of options. You can get a fixed,
adjustable, or interest only type of conventional loan depending
on what your financial situation is. Here are some of the
benefits:
FHA
/ HUD Government Loans
FHA
loans were designed to increase home ownership. They make it
easier than conventional loans to buy a new home. In fact credit
scores are not a major factor when qualifying. These are
excellent loans for first time homebuyers or young couples. One
downside to FHA loans is that they require mortgage insurance
for the first 5 years. Here are some of the benefits:
-
Only
3% Down
-
Easier
to Qualify for
-
100%
Gift Down Payments are Accepted
-
Fixed
or Adjustable Options
-
Government
Regulated Fees
VA
Veterans Administration Loans
There
are over 29 million veterans that can qualify for VA loans which
are specifically designed for them. The qualification process is
easy and these loans do not require mortgage insurance like FHA
loans. One downside to VA loans is that they amount that you are
allowed to borrow is limited. Here are some of the benefits:
-
100%
Financing Available
-
Easy
to Qualify for
-
No
Early Payoff Penalties
-
Veterans
Do Not Have To Pay Many Closing Costs
-
Government
Regulated Fees
Refinance
Loans
Refinancing
can be a great way to take advantage of some previously unseen
benefits from the time you purchased your home. Just like a new
home purchase there is a huge variety of loan options. Depending
on what kind of market you're in, if interest rates are rising
or falling there may be a refinance option available to you.
Take a look at common reasons to refinance.
Lowering
Your Payment
When
the interest rates are going down it is extremely easy to
refinance your house to the current rate and lower your monthly
payment so long as you are in good credit standing. A typical
refinance to lower a monthly payment can save you up to $100 a
month or more!
Debt
Consolidation
Everyone
encounters a time when they have debts that begin spiraling out
of control. Credit cards with high interest rates, unexpected
medical emergencies, or school bills are the most common reasons
people establish debt. If your home has developed some equity it
is easy to refinance and consolidate all of your bills into one
low mortgage payment. The best part is the interest on all of
those bills may now be tax deductible because it is combined in
with your mortgage.
Switch
from an Adjustable to Fixed Rate Loan
If
your only option when you first moved into your home was an
adjustable interest rate loan then a refinance as rates decrease
is an excellent way to lock in a fixed rate. Most homebuyer,
especially in high value areas cannot afford the payments on
fixed rate loans initially when they buy their home so they go
adjustable. Do not let that deter from buyer because the line
you can always refinance!
Shorten
a Loan Term
When
interest rates fall it may be possible to refinance and get a
loan that is shorter in term yet your monthly payments are the
same or less. Imagine paying your house off sooner except every
month you send away the same check. Be savvy a follow the
interest rates so you do not miss when these opportunities come
around.
Get
Rid of Your Mortgage Insurance
Some
borrowers are required to carry mortgage insurance when they
first buy a home. After time when enough equity is developed,
usually their loan balance is 80% of the value of their home
they can refinance and eliminate the need for mortgage
insurance. This can be a costly extra payment per month that can
be easily removed.
Home
Equity Loans
Home
Equity Line of Credit (HELOC)
A
home equity line of credit works like a credit card against the
equity on your house. You may borrow available funds up to the
maximum limit on your credit line. The interest rate on a HELOC
(home equity line of credit) is variable and changes based on
the index it is tied to, such as the prime interest rate shown
in the Wall Street Journal or other financial reports. Your
interest rate adjusts when the index changes. During the first
10 years your minimum payments are interest-only. At the end of
this period, the outstanding balance of your HELOC (home equity
line of credit) is due and payable. Since there is this period
where you can no longer borrow and must pay it back if differs
from a credit card so you cannot stay in debt.
Installation
Loans
Basic
home equity loans or "installation loans" is money loaned to
be repaid at a fixed interest rate in monthly payments over the
term of the loan. The term of the home equity loan is shorter
than your average first mortgage on a home. Home equity loan
interest rates are higher than first mortgage rates due to the
fact that lenders take greater risks than a 1st mortgage lender.
When you decide, or it becomes necessary to sell your home, the
lender of the first mortgage is first in line to be paid, ahead
of the second mortgage holder (home equity loan).
125%
Home Equity Loan
125%
Home Equity Loans are a ideal solution for borrowers with good
credit but limited available cash. Security Pacific Financials
125% Home Equity Loan provides you with the home equity answer
that you have been looking for. It allows borrowers to pay off
current credit card debt, reduce monthly expenses or finance
home improvements or large purchases by borrowing up to 125% of
the value of your home. Find out what amount you can borrow,
multiply the current value of your home by 125% and subtract the
balance on your current mortgage. The difference is the amount
available to you to pay off those lingering bills! 125% Home
Equity Loans can minimize your monthly payments greatly if you
are consolidating your debt. While rates are usually higher than
a traditional second or home equity loan, they are lower than
consumer or credit card rates and offer longer repayment terms,
saving you money.
ARMs
- Adjustable Rate Mortgages
If
you are a first time home buyer one of the easiest ways to make
your dream come true is with an adjustable rate mortgage. It is
true that they do not offer the security over time of a fixed
loan, however their rates are always better initially... and
sometimes that is all you need! In the first 5 years of an
adjustable rate loan it is possible to save tens of thousands
of dollars over a comparable fixed rate loan. ARMs do offer
many unique variations such as 3/1's, which mean the loan is
fixed for the first 3 years then it adjusts every year after
that. The fixed period can also be for 5 or 7 years with the 5/1
or 7/1. After the fixed period is up on this type of loan it is
very common to refinance into a fixed rate loan.
Security
Pacific Financial also offers one of the most competitive loans
in the industry, the Freedom
Loan. This loan allows you to make payments of only 1.95%
for the first 5 years of the loan term. After this time period
the loan switches to an adjustable rate loan. For more
information go to the Freedom
Loan page.
Here
are some of the benefits to ARMs:
-
Perfect
for First Time Buyers!
-
Lower
Initial Interest Rates than Fixed Rate Loans
-
Easier
to Qualify for
-
Terms
can be Fixed for the First 1-7 Years
-
Develop
Equity Faster by Paying Extra
-
Refinancing
to Fixed Rate Loans is Easy
Save
Me Loans!
Everyone
has had credit difficulties at some point and needed some help.
We believe that most people in this situation couldn't help
the circumstances, so we have developed a wide variety of loans
to help you get back on track. Bad credit is okay at Security
Pacific Financial! We still have loan programs that even some of
the toughest credit situations can qualify for. Contact one of
loan specialists if you fall into any of troubled waters below:
-
Currently
in bankruptcy
-
Just
completed bankruptcy
-
Trying
to avoid foreclosure
-
Low
credit scores
-
Denied
everywhere else
-
Many
mortgage late payments
-
Collections
and Judgments against you
We
want to help, call a specialist now! 1-(866) 854-9961
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