Finance Information

REAL ESTATE MORTGAGE PROGRAMS

In order to help you with your next home purchase, below are some of the major mortgage programs.

Variable or Adjustable-Rate Real Estate Mortgage
With an adjustable rate mortgage, the rate of the loan can change throughout the term of the loan. Many ARMs have a short fixed period and then become truly adjustable. The rate of the loan is based on adding points to a fixed base.

Fixed-Rate Real Estate Mortgage
With this type of loan, the interest rate remains consistent throughout the term of the loan.

Balloon Real Estate Loan
A balloon loan is a real estate loan where there is a lump sum due at the end of the loan. This normally encourages an individual to refinance prior to the end of the term of the loan.

Jumbo Real Estate Loans
A jumbo loan is any residential or commercial loan exceeding the guidelines of Fannie Mae and Freddie Mac.

FHA Loans
An FHA loan is a loan in the United States that is insured by the Federal Housing Administration.

VA Loans
A VA loan is a loan in the United States guaranteed by the Veterans Administration. The loan may be issued by qualified lenders. The VA was designed to offer long-term financing to American Veterans or to their surviving spouses.
 
Reverse Mortgage
 A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash. The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower. The borrower is not required to pay back the loan until the home is sold or otherwise vacated. As long as the borrower lives in the home he or she is not required to make any monthly payments towards the loan balance. The borrower must remain current on property taxes, homeowners insurance and homeowners association dues (if applicable).
 
1031 Exchange
Allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. This is available to investors only.
 
Prop 60/90 
Allows for people 55+ to transfer their base tax basis from the same county or to another country one-time. The replacement property must be of equal or lesser value "current market value" to the current property. Must own and occupy the new property to qualify.