Do you know which loan is right for you?

Not to worry. Elite One prides itself on guiding you through the crowded landscape of loan programs to identify the one(s) that meet your specific needs. Following is a general breakdown of loans we offer:

Fixed Rate Mortgage (FRM)

This is the loan of choice in nearly 70% of home purchase transactions due in large part to its stability. * The fixed-rate mortgage has an interest rate that is locked in place for the life of the loan and monthly payments (principal + interest) never change, regardless of the prevailing market rate. This may be a good choice if you plan to stay in your home for seven years or longer. If less, an adjustable-rate loan may be a less expensive option.

*LendersMark Financial Network

Adjustable Rate Mortgages (ARM)

Unlike fixed rate mortgages, the adjustable rate mortgage fluctuates with the prevailing market rate. This type of loan is tied to an index and adjusts at certain predetermined intervals. Depending on the prevailing rate at that time, it may adjust higher or lower affecting the monthly payment. Often, there are caps in place limiting the amount rates can rise during the term of the loan. In the grand scheme of things, the ARM is typically more expensive in the long-term but easier to qualify for than a FRM.

Conventional, FHA & VA Loans

The majority of loans in the conventional market use Fannie Mae and Freddie Mac guidelines for conforming loans, which are generally $417,000, or less for a single-family loan (higher in some regions of the country). The guidelines are established for credit scores, income requirements and minimum down payments.

The Federal Housing Administration (FHA) is a part of the U.S. Department of Housing and Urban Development. It does not lend money but provides government backing in the event the borrower defaults on the loan. FHA loans can be fixed or adjustable and have lower requirements on the down payment than a traditional conventional loan. An FHA loan is an appropriate fit for the borrower who has less-than-perfect credit scores, moderate debt-to-income ratios and/or less than 15% for a down payment.

With a VA loan, veterans in good standing can purchase a primary residence with no money down as long as the purchase price doesn’t exceed the appraised value of the property and the seller is willing to pay the closing costs. Veteran still need to qualify with respect to income and credit score.

Reverse Mortgage

The reverse mortgage has become very popular in the last decade as ageing Americans seek to convert their home equity into cash. It provides seniors (62 years +) with the financial stability to enjoy their retirement years, cover basic expenses and pay for health care. A reverse mortgage is the opposite of a typical mortgage loan. Instead of payments being made to the lender, depending on the payout option selected, the borrower may receive payments from the reverse mortgage loan proceeds. The borrower is not required to pay back the loan until the home is sold, vacated or upon the borrower's death, or the terms of the program are not met. The homeowner is still responsible to pay all property related fees, taxes and insurance. The home must be maintained in good condition and the borrowers’ primary residence. There are multiple types of reverse mortgages, and Elite One will cover them so you can determine the best solution for you.

Refinance

Refinancing a loan can make a lot of sense depending on current market rates and your personal financial situation. If prevailing rates are lower than what you are currently paying, it’s worth exploring a new loan, especially if your loan rate is adjustable. It is important to weigh the cost of refinancing (points charged by the mortgage lender) against the long-term monthly payment savings. If you are using the loan to improve your home, you may even be able to deduct a portion of the interest right away. Elite One will help you determine the ideal scenario based on your commitments and financial standing.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.