Types of Texas Home Loans available from Adam Mortgage
ADAM MORTGAGE offers solutions for our customers by providing the products and services to aid in the process of obtaining a quick, successful, and smooth closing on your home. Below are the different loans we offer.
Your interest rate and monthly principle and interest (P+I) payments remain the same for the life of the loan. The 30 year and 15 year fixed-rate are the most popular. This type of loan is a good choice if you plan to stay in your home for a long time.
The interest rate is higher on a longer-term loan than on a shorter-term loan. On a shorter term the interest rate is lower, but the monthly P+I are higher than on a longer-term loan.
Adjustable Rate Mortgage (ARM)
Your interest rate and monthly principle and interest (P+I) payments remain the same for a defined initial period, and then adjust annually to the current rate. There are a variety of longer terms 15, 20 or 30 year. There is an interest rate cap (ceiling) that sets a limit on how high or low your interest rate can go.
ARM's have a lower initial interest rate than a fixed rate mortgage. The interest rate cap limits the maximum amount the P+I payment may increase or decrease at each adjustment period.
Provide fixed-rate and adjustable rate financing with down payment options as low as 3.5%. Borrowers can use a gift or grant for all or a portion of down payment and closing costs. Requires less cash up front, but typically you have to pay FHA mortgage insurance premiums.
You can qualify with a co-applicant, even if the person doesn't live in the home. You can only have one FHA mortgage at a time.
Provide fixed-rate and adjustable-rate financing on primary residences for veterans and other borrowers who meet the eligibility requirements of the VA program. Offers low and no-down payment options and do not require monthly mortgage insurance payments. Closing costs can come from as a gift or grant. This loan requires a one-time VA Funding Fee that can be financed into your loan or paid in cash at closing.
May provide up to 100% financing with a maximum loan amount of $484,350.
Call Ken for further explanation 713-464-4848
Funds that are “temporarily” loaned from a Bank to a Borrower who is looking to build a residence. The money from a Lot Loan is used to finance the purchase of the land the Borrower will build on. Lot loans are available with fixed or adjustable interest rates.
Lot Loans can be financed from 3-10 years. A required down payment of 20-25% of the purchase price is standard.
Second Lien Loans
A second lien/mortgage on a property is subordinated (secondary) to the first lien/mortgage.
They come with a higher interest rate than the first lien/mortgage.
Second lien/mortgages make good sense when you have a loan amount over the Fannie Mae/Freddie Mac 80% loan to value limit.
A borrower may not have enough down payment to arrive at the $484,350 and the down payment amount leaves an amount that needs to be borrowed. Therefore, the borrower can omit the PMI (private mortgage insurance.)
Call Ken for further explanation 713-464-4848
Jumbo loans have become increasingly popular. They allow some buyers to afford their dream or luxury home. Often these non-conforming mortgage/loans are at a slightly higher interest rate.
If the loan amount exceeds $484,350 then a Jumbo home loan may be right for you. A Jumbo mortgage loan amount exceeds the conforming loan limits maximum set by Fannie Mae/Freddie Mac of $484,350 and up to $5mm. Fannie Mae/Freddie Mac do not purchase Jumbo loans.
For qualifying, the borrower’s minimum credit score must be at least 680, but a 700-720 is more common. A 20-30% down payment and higher interest rate is required due to the fact there is more risk for the lender.
If you are considering building or remodeling your home, we offer the Two-Time Close construction loan. The Construction loan includes the purchase of the land and the residential construction costs. This program is very popular with all parties and will save you money.
When you replace your existing home loan with a new loan and lower interest rate, your Principle and interest (P&I.) The Refinancing Process could also lower your payments. Refinance is a good option if you have an Adjustable Rate Mortgage (ARM) program into a Fixed-Rate mortgage to lower your current payment. You could also refinance to pull cash out of your homes equity.
There has never been a more appropriate time for refinancing your mortgage, as there is today. The job market and economy have consistently been improving. Today's current interest rates are powerful lure, but we may see some increase in the months to follow. As a rule of thumb, anyone who can find a deal that will recapture the closing costs within 18 months should consider this Refinancing loan program.
Loan Programs available are; 15 year and 30 year fixed rates or adjustable rate mortgages (ARM).