|
30
Year
Fixed |
A
loan
that
has
an
interest
rate
that
is
fixed
for
the
term
of
30
years.
With
the
interest
rate
locked
for
the
term
of
the
loan
the
corresponding
principal
and
interest
payment
is
fixed
for
the
term
and
pays
the
loan
in
full
at
the
end
of
the
term. |
|
15
Year
Fixed
|
A
loan
that
has
an
interest
rate
that
is
fixed
for
the
term
of
15
years.
With
the
interest
rate
locked
for
the
term
of
the
loan
the
corresponding
principal
and
interest
payment
is
fixed
for
the
term
and
pays
the
loan
in
full
at
the
end
of
the
term.
|
|
1
Year
Adjustable |
A
loan
that
has
an
interest
rate
that
may
adjust
every
12
months.
With
the
adjustment
in
the
interest
rate
the
corresponding
principal
and
interest
payment
may
adjust.
The
adjustments
in
both
the
interest
rate
and
payment
are
subject
to
limitations
(caps)
both
yearly
and
overall
as
established
at
the
inception
of
the
loan.
The
term
of
the
loan
is
typically
30
years
and
the
initial
interest
rate
is
usually
lower
than
a 30
year
fixed
rate
loan. |
|
COFI
ARM |
An
adjustable
loan
with
a
Cost
of
Funds
Index.
This
loan
typically
has
a
very
low
initial
interest
rate
and
monthly
payment.
Interest
rate
and
payments
are
adjusted
every
12
months
subject
to
established
limitations.
These
loans
also
offer
the
customer
options
as
to
the
amount
they
wish
to
pay
each
month.
Terms
can
be
up
to
40
years. |
|
MTA
ARM |
An
adjustable
loan
with
a
Monthly
Treasury
Average
index.
This
loan
typically
has
a
very
low
initial
interest
rate
and
monthly
payment.
Interest
rate
and
payments
are
adjusted
every
12
months
subject
to
established
limitations.
These
loans
offer
the
customer
options
as
to
the
amount
they
wish
to
pay
each
month.
Terms
can
be
up
to
40
years. |
|
3/1
ARM |
A
loan
that
has
a
fixed
interest
rate
and
principal
and
interest
payment
for
the
first
3
years.
Starting
the
4th
year
the
loan
reverts
to a
1
year
adjustable. |
|
5/1
ARM |
A
loan
that
has
a
fixed
interest
rate
and
principal
and
interest
payment
for
the
first
5
years.
Starting
the
6th
year
the
loan
reverts
to a
1
year
adjustable. |
|
7/1
ARM |
A
loan
that
has
a
fixed
interest
rate
and
principal
and
interest
payment
for
the
first
7
years.
Starting
the
8th
year
the
loan
reverts
to a
1
year
adjustable. |
|
Conforming
Loans |
Loans
$417,000
and
below
that
meet
the
requirements
set
forth
by
Federal
National
Mortgage
Association
and/or
the
Federal
Home
Loan
Mortgage
Corporation. |
|
Jumbo
Loans |
Loans
in
excess
of
$417,000. |
|
VA
Loans |
Loans
made
by
lenders
that
are
guaranteed
by
the
Veterans
Administration
for
veterans.
The
veteran
must
have
their
VA
Eligibility
Certificate
and
plan
to
live
in
the
home.
The
benefits
are
a
lower
down
payment
and
cost
requirements. |
|
FHA
Loans |
Loans
that
are
insured
by
the
Federal
Housing
Administration,
a
division
of
Housing
and
Urban
Development
of
the
federal
government.
There
are
loan
limits
dependent
upon
the
location
of
the
property.
The
advantages
to a
FHA
loan
are
lower
down
payment
requirements
and
typically
easier
qualification
requirements. |
|
Full
Document
Loans |
A
loan
where
all
income,
assets,
credit
and
collateral
are
verified
in
written
form. |
|
NIV
Loans |
A
loan,
that
for
qualification
purposes,
whereby
income
is
not
verified.
The
loan
is
underwritten
based
on
credit,
assets,
and
collateral
information.
These
loans
usually
have
restrictions
concerning
loan
amount
and
have
credit
requirements.
These
loans
also
typically
have
a
higher
interest
rate. |
