Fixed Rate Loans
FHA Fixed Rate Loans are available in a 30 and 15 year terms. Principal and Interest Payments are paid monthly. Interest is pro-rated on a monthly basis rather than a daily basis. There are no pre-payment penalties charged on any FHA loans and the interest rates are guaranteed to remain the same throughout the entire term of the loan.
Adjustable Rate Mortgages (ARM)
FHA ARMs are available with a 1 Year fixed rate term before it starts adjusting, and then adjusts annually. The adjustment is based on the 1 Year Treasury Bill index plus the margin which is normally 2.75%. These loans have 1% adjustment cap, which means that the loan can not adjust more than 1% per annual adjustment and has a lifetime adjustment cap of 5%. This means that it can not adjust more than 5% over the life of the loan. These safeguards are more stringent than conventional loans and are intended to keep the interest rate and payment from making major adjustments.
FHA ARMs are utilized mainly for those people with good future earning potential to allow them to "grow" into a more expensive home by keeping their initial monthly payments as low as possible. Due to the nature of the loan, talk with Lance about the feasibility of this loan in your particular situation.
Please note that if you currently have an FHA loan, you may qualify for an FHA refinance with no new qualification required. You may also qualify for a conventional refinance and receive a refund from your original UFMIP! Please call Lance for details!
- Conventional Loans
- FHA Loans
- VA Loans
