40-Year Fixed-Rate Mortgage

By increasing the standard loan term from 30 to 40 years, monthly payments are lower, thus making them more affordable, and increasing borrowers' purchasing power. The 40-year Mortgage is ideal for borrowers who face affordability issues and think homeownership is beyond their reach. First-time home buyers, or those living in high-cost areas seeking manageable monthly payments may find this amortization term attractive. The 40-year Mortgage is eligible on both standard fixed-rate products as well as our standard 3/1, 5/1, 7/1 and 10/1 hybrid ARMs.

Key Features

• With a longer amortization period, borrowers obtain lower mortgage payments.
• Easier to qualify for a mortgage as well as a larger loan amount.

30-Year Fixed-Rate Mortgage

The most popular type of mortgage, the 30-year fixed-rate loan is most appealing to borrowers who want to stay in their homes for a long period of time and who want to enjoy consistent interest payments during this period. Other benefits include keeping housing expenses to a minimum while maximizing mortgage interest deductions for income tax purposes.

Key Features

• This mortgage can require a low down payment, sometimes only 3 or 5 percent.
• Payments are stable -- your monthly mortgage payment will not increase.
• The 30-year fixed-rate mortgage provides maximum interest deduction for tax savings.

20-Year Fixed-Rate Mortgage

With a 20-year fixed-rate mortgage, you can build up equity in your home more quickly than with a traditional 30-year mortgage and save interest over the life of your loan. As with all fixed-rate mortgages, the interest on your loan never changes, bringing you peace of mind that your principal and interest payments will remain level over time. However, higher monthly mortgage payments may make the 20-year fixed-rate mortgage more difficult to qualify for compared to the 30-year fixed-rate mortgage.

Key Features

• You pay less interest over the life of your loan, compared to a 30-year fixed-rate mortgage. For example, on a $100,000 loan at 8.25 percent interest, the 20-year fixed-rate mortgage can save you over $65,000 in interest payments when compared to a 30-year mortgage.
• Interest rate payments in the early years of the mortgage are comparable to a 30-year fixed-rate mortgage, allowing for a sizable mortgage interest tax deduction.
• Your monthly payments are less than for a 15-year mortgage, allowing you a greater chance to qualify for this type of mortgage.

15-Year Fixed-Rate Mortgage

You pay off a 15-year fixed-rate mortgage in half the time it would take to pay off the traditional 30-year fixed-rate mortgage. This shorter term makes it possible to build up equity in your home faster, which can let you move up more quickly to a more expensive home or save more in preparation for retirement or a child's education. This loan is particularly attractive if you're refinancing your mortgage because you can shorten your loan term plus enjoy a lower interest rate. Fifteen-year mortgages are usually offered at interest rates lower than those available with 30-year mortgages. However, higher monthly payments may make it more difficult to qualify for the 15-year fixed-rate mortgage compared to the 30-year fixed-rate mortgage.

Key Features

• A 15-year mortgage offers a lower interest rate than a 30- or 20-year mortgage. This saves you a significant amount of interest over the life of the loan. For example, with a $100,000 loan at 8.25 percent interest, the 15-year mortgage will save you $95,000 in interest payments over the life of your loan, compared to the same mortgage amount for a 30-year term. However, monthly mortgage payments will be higher.
• The shorter-term allows you to own your home sooner.

Staying in the same home for 30 years may not be in your plans -- which is one reason to consider an adjustable-rate mortgage (ARM). An ARM generally offers a lower initial interest rate than a fixed-rate mortgage. With lower monthly payments in the initial years of your mortgage, you may qualify for a larger mortgage amount if you choose.

If one or more of these situations describes you, an ARM might be a good fit:

• You plan to stay in your home for a relatively short period of time
• You want lower initial monthly payments
• You want to qualify for a larger mortgage amount

Key Features

• You can select an ARM with a fixed-rate period of up to 10 years.
• After that, the interest rate adjusts (usually annually) based on a specific financial index
• In addition to the index, an additional percentage, known as a "margin" may be added to the index value to determine your interest rate at the time of adjustment.

An interest-only loan is one that gives you the option of paying just the interest or the interest and as much principal as you want in any given month during an initial period of time. Interest only loans can be 30-year fixed-rate mortgages or adjustable-rate mortgages. We offers home loans that are interest-only for the first three, five, seven or ten years.

If you choose to make the interest-only payment, your monthly payment will be lower than it would be with an interest and principal payment. Your interest rate may or may not be lower than a traditional mortgage, but you will have the option of flexible payments. Interest-only loans allow you to control your payment amount and your cash flow in any given month during the interest only period.

One Mortgage Takes You Through Building and Living in Your New Home
Americans are building new homes at record levels. With a HomeStyle^® Construction-to-Permanent (C-to-P) Mortgage, you can be one of them. You can finance the purchase of land, construction of a new home, and a permanent mortgage at one time. This saves you money and time by having just one loan approval and one loan closing. It also gives you the peace of mind to know that you already have a permanent mortgage in place before your new home is finished. You can even lock in an interest rate before construction begins. Compare this to the added costs and aggravation of having to get separate loans for the land acquisition, the construction costs, and the permanent mortgage.

A Cost-Effective Way to Renovate Your Home
Are you looking to purchase a home that needs renovation? Or, do you need to fund renovations on your current home? A HomeStyle^® Renovation Mortgage can

help meet your needs. The HomeStyle Renovation Mortgage is a cost-effective and convenient way to combine home purchase or refinance with the cost of renovating or repairing your home in one loan with one closing. What's the benefit? Instead of financing the renovation with a second mortgage or home equity loan, you get the lower interest rates of a first mortgage and only have to pay for one mortgage closing. And with a HomeStyle Renovation Mortgage, you can borrow an amount based on the value of the home after the renovations are finished, so you know you will have the funds available to do the job right.

Mortgages with little or no down payment
Are you concerned about not having enough money for a down payment? Or, would you like to set aside some of the money you have saved for move-in expenses? If so, a Flexible 100^TM or Flexible 97^® mortgage might be what it takes to get you into your own home. With a Flexible 100 mortgage, you don't need to make a down payment and can provide as little as $500 of your own money toward closing costs. With a Flexible 97 mortgage, you can pay just 3 percent of your home's purchase price toward your down payment, and this amount can come from sources such as gifts, grants, loans from relatives or nonprofit groups; or employer-assisted housing.

The FHA was created back in the mid 60's by the Department of Housing and Urban Development. FHA is in charge of helping consumers qualify and get a home loan, especially when other avenues are not feasible for themselves. Unlike more stringent mortgage programs, the FHA Mortgage is more attainable for people with little or no credit. This is a key factor in why people choose an FHA loan over a conventional mortgage loan.

In addition, FHA Loans have a lower minimum income requirement and the insurance related to taking out an FHA Mortgage is usually less than a typical mortgage. There are limits on the amount one can get with an FHA loan, so it is important your review your states limits when it comes to FHA mortgages. Each state varies and this could be a determining factor in whether this kind of loan is right for you.

Bad Credit? No Problem, We Can Help!   Why let past credit problems or uncontrolled debts prevent you from getting the loan you need? Have you been continually turned away form banks and lenders because you have made previous credit mistakes?  We can help find anyone, regardless of their past credit history or young credit, a home of their own.  If you have not had the best of luck keeping your credit report clean, do not worry.   We have a huge database of products that specialize in finding  people like you the mortgage loan that they need.