One of the most difficult aspects of the finance process is sorting through the multitude of loan products currently available. It is confusing! We can help you easily eliminate the mortgages that you definitely don’t want and focus on a shorter list of mortgages that will be best for your family. Things to consider are: How much down payment you have, if any?; How long you plan to live in the home?; How much home do you need?; How you will pay for closing costs and other expenses?; How many recreational activities outside the home do you enjoy? Considering all aspects of home ownership is key to being a happy and confident homeowner.
Fixed Rate Loans– The interest rate stays the same throughout the life of the loan, so the principal and interest payments never change. Several types of fixed rate mortgages exist and range from a simple refinance to a purchase with no down payment. Most loans that provide for 100% financing will be 30 year fixed rate loans. Based on where the market has been over the last few years, a fixed rate loan has been the obvious choice for most homeowners.
ARM (Adjustable Rate Mortgage) Loans – The interest rate stays the same for a fixed period of time and then can change periodically, so the payments will also change. Depending on what is happening in the market, the rate on an ARM loan may be higher, somewhat lower, or much lower than the rate on a fixed rate loan, so it pays to examine both options carefully.
First Time Homebuyer Loans - The term First Time Homebuyer Loan is used throughout the industry to explain any loan that helps someone purchase their first home, or a new home if you haven't owned a home in the last 3 years. Each loan program has different guidelines that must be met to qualify for loan, typically based on credit, income, and debt. At the Bank of Sullivan we have access to several different financing options for the first time homebuyer and will gladly help find the right one for your family.
Construction to Permanent Loans – A construction loan is for those who wish to build their own home, and is typically a short term loan. After completing construction, long term financing (a permanent loan) will be needed; which is generally a fixed rate loan. There are restrictions on the type of financing available, depending on the loan to value percentage and length of ownership. Working with Bank of Sullivan can assure a smooth transition from construction to permanent financing.
Government Backed Loans - A government backed loan is a loan that is backed by the federal or local government in case of default. It protects the lender, and in order to get the backing, the borrower typically pays a guarantee fee or insurance fee.