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MORTGAGE OPTIONS

30-Year Fixed Rate Loan  Mortgage payments are calculated over a period of 30 years and have a fixed interest rate and payment for the life of the loan. If you have limited funds for a down payment, ask about OJ Mortgage’s no-closing-cost option or FHA loans. If you are a Veteran, inquire about a VA 30-year loan.

15-Year Fixed Rate Loan Payments are calculated over a period of 15 years and have a fixed interest rate and payment for the life of the loan. Payments are higher for this loan than the 30-year fixed rate loan, but it builds up equity more quickly.

Adjustable Rate Mortgage (ARM) An adjustable-rate mortgage (ARM), or variable-rate mortgage, is a mortgage loan with an interest rate that is periodically adjusted according to a specific benchmark plus an additional spread, called an ARM margin.The initial interest rate is normally fixed for a period of time after which it is reset periodically, often every year, some times every month. There are four primary ARM options:

 ~ 3/1 ARM  This loan type has fixed payments for the first 3 years and then turns into a 1-year ARM, adjusting every year thereafter. The loan payments are calculated over a period of 30 years. If you have limited funds for a down payment or you are a Veteran, ask your loan officer about Gateway Funding’s FHA or VA 3/1 Arm loan.

~ 5/1 ARM This loan has fixed payments for 5 years and then turns into a 1-year ARM, adjusting every year thereafter. The loan payments are calculated over a period of 30 years. If you have limited funds for a down payment or you are a Veteran, ask your loan officer about Gateway Funding’s FHA or VA 5/1 Arm loan.

~ 7/1 ARM This loan has fixed payments for 7 years and then turns into a 1-year ARM, adjusting every year thereafter. The loan payments are calculated over a period of 30 years.

~ 10/1 ARM This loan has fixed payments for 10 years and then turns into a 1-year ARM, adjusting every year thereafter. The loan payments are calculated over a period of 30 years.

Jumbo Loan A jumbo loan exceeds what is known as the conforming loan limit, current $417,000 for a single-family home. Qualifying for a jumbo loan usually requires lower debt-to-income ratios, higher credit scores, larger down payments and higher reserves than conforming loans. Jumbo loans can also have higher interest rates compared to a conforming loan.