Fixed-rate Mortgages Fixed rate mortgages are mortgages in which the interest rate is fixed and the term stays the same for the entire loan period. Annually, fixed rate mortgages are sought by approximately 75% of home loan applicants and refinancers. Fixed rate mortgages can be obtained in terms of 10, 15, or 30, years.
Fixed rate mortgages have many advantages
1) The homeowner is aware of the mortgage’s interest rate and monthly payments.
2) The homeowner is informed about when the loan will be fully paid.
Fixed rate mortgages make it easier to manage your finances.
4) Home applicants who have a fixed-rate or ARM mortgage rate when interest rates are high can refinance their mortgage at lower rates, but they would need to include some closing costs.
5) The majority of closing costs can be included in a loan, and may be tax-deductible.
6) A fixed-rate mortgage’s interest rate is usually lower than that of an adjustable mortgage, which may rise in the future.
Variable Rate MortgagesAn adjustable rate mortgage, or ARM, is a mortgage loan in which the interest rates change after a set period from loan initiation. ARM mortgages are considered more risky because of the possibility that the rate will change and the homeowner may be unable to pay the new payment.Advantages of adjustable rate mortgages
1) An ARM mortgage’s initial rate is typically lower than fixed rate mortgages.
2) Higher interest rates make it easier to pay.
3) It’s a great loan for people (e.g. doctors, lawyers, etc.) Expecting an increase in their income
Know Your Balloon and Jumbo Mortgages
Balloon mortgagesBalloon mortgages are shorter-term than other mortgages, and they work much like a fixed rate mortgage. Because a balloon (total payment) is required at the loan’s end, the monthly payments of balloon mortgages are less than fixed-rate mortgages. Because it is only the interest that is being paid each month and not the principal, balloon mortgage payments are less. If the borrower intends to sell the house or refinance it before the due date for the balloon payment, then balloon mortgages can be a great option. But homeowners could find themselves in serious financial trouble if they can’t afford the balloon payment. This is especially true if they have to refinance their balloon mortgage through their original lender.Jumbo Mortgages
A Jumbo mortgage is a mortgage loan of more than $417,000 and not in compliance with the Fannie Mae or Freddie Mac guidelines. TFC Tricont Mortgage Client Advisors can assist you in obtaining a government-financed jumbo mortgage greater than 2 million dollars. An FHA jumbo loan can be funded with as little as 3.5% down.
TFC Tricont Mortgage – Jumbo Mortgage Characteristics
It can do amazing things for you
1) A jumbo mortgage greater than $2 million may be possible to finance
2) Can I get a fixed or adjustable rate mortgage?
3) You don’t have to wait forever for your closing
4) You may be eligible for a 3.5% FHA Jumbo Mortgage
Special program for teachers, students, employees of educational institutions, police officers, firefighters and health care professionals
Gifted reserves and higher ratios available to eligible borrowers
Get to Know Your Lots and Construction Loans
Tricont Lot Loans Programmes
A lot loan is money temporarily granted by a bank or lending company to a borrower looking to start a primary or secondary business.
Secondary residence. A lot loan can be used to finance the purchase and construction of land.
A lot loan is not the same as a construction loan. The lot loan will pay for the land on which the construction will be done.
A construction loan is money used to finance the construction of the house, including labor and materials. When the borrower is ready and able to build, some lenders will allow them to convert lot loans into construction loans. If the borrower is ready to finance the home, the progression from a lot loan into a construction loan can be extended to a mortgage.
Lot loans are purchase money loans that borrowers are not yet ready for to start construction. However, they will soon be ready to apply for a construction loan.
The lot must meet the requirements of the Bay Area neighborhood and at least one utility must also be accessible from the street. If these features are common in the area, septic tanks and propane tanks are acceptable.
Lot loans can be funded with either full or alternative documentation, or as an income loan.
Lenders can vary the terms of a lot loan. There are two types of lot loans: fixed and adjustable interest rates. The term of the loan is typically short but will vary depending on the lender. A lot loan payment can be made monthly with either interest only or principal. Most lot loans are paid out in one lump sum.
Lenders will specify the monetary limits for lot loans, requirements for acreage and what is acceptable lot. While land loans are available for undeveloped property, lot loans must be located in an area that is considered to be a residential petential.Tricont Construction Loans
A construction loan is an interim, short-term loan that can be used to finance the construction of a new home or major renovations of existing properties. As the construction progresses, the lender pays the borrower periodic payments. Construction loans are short-term loans that can be repaid with permanent financing.
A construction loan is money used to finance the construction of a home, including labor and materials. There are some
Lenders will transfer lot loans to construction loans if the borrower is ready for building. If the borrower is ready to finance the home, the progression from a lot loan into a construction loan can be extended to a mortgage.
There are a variety of 15-year programs available with fixed rates periods of 1, 3, 5, 7, 10, 15, 20, 25 and 30 years at the lowest Tricont rates