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Learn about loans

We offer a wide variety of home loans for almost every borrower. You'll find everything you need to know about each of our home loan programs and their advantages here. Just browse the links below to learn about each subject and I am always ready to help you with any questions you may have.

Overview
Fixed Rate Home Loans
Adjustable Rate Mortgages (ARMs)
Fixed Period ARMs
Government Loans
Over $417,000 Loans (Jumbo)

Overview
There are home loans for almost every type of home buyer. The goal here is to match the benefits of a specific loan type with your goals for owning a home. Here's a chart to start you thinking.

Your Home Ownership Goal Your Loan Strategy
Plan to live in your home for many years? Low interest rate over a long period of time. Since you would be making payments for years to come, your best strategy may be a fixed rate loan and paying points to get your rate as low as possible.
Plan to sell or refinance your home in just a few years? Avoid points and closing costs since the difference in interest payments won't typically make up for your out-of-pocket costs at closing. You may want to try for a smaller down payment. A fixed period ARM may be a good choice for holding rates down for a set number of years.
Want to pay off home loan by the time your children are in college? Shorter-term loans such as a 15 year fixed rate home loan are a smart way to plan for using income for other goals later in life. Plus you build equity faster.
Want to budget for a fixed payment each month? A fixed rate loanhas a principal and interest payment that stays the same for the entire term of the loan.
Comfortable with periodic changes to interest rate if it means you can get more home now? Adjustable rate mortgages (ARMs) can be a great solution for people with incomes that are going to grow and will quickly refinance or be able to afford a larger payment in a few years should interest rates rise.

Fixed Rate Home Loans
Some people just like certainty in their life. And though you can't count on the weather, you can count on a fixed rate home loan. It will have the same interest rate for the entire life of your loan. And you can choose a variety of repayment terms, with 15, 20 and 30 years the most common.

Fixed rate loans can be a good choice if you:

  • Like the current rate and want to keep it for the life of your loan
  • Plan to stay in your house a long time
  • Prefer the security of a fixed principal/interest payment over one that changes periodically

30 Year Fixed Rate Home Loan
Lowest monthly payment of most fixed rate loan choices
Keeps home loan payments more affordable by extending them over a long period of time
Provides maximum tax-deductible interest (ask your tax advisor)

20 Year Fixed Rate Home Loan
Helps you pay off your home faster and build equity quicker than a 30 year home loan
Has a lower interest rate than a 30-year loan (but higher monthly payments)
Saves considerable money on total interest paid over the life of your loan

15 Year Fixed Rate Home Loan
Has higher payments than a 30 year or 20 year home loan, but a lower interest rate
Saves considerable money on total interest paid over the life of your loan
Builds equity in your home faster

Adjustable-Rate Mortgages (ARMs)
What goes up, must come down. And that's basically the principal of ARMs. The interest rate you pay is adjusted from time to time to keep it in line with changing market rates. This means when interest rates go up, your monthly home loan payments may go up. And, when interest rates go down, your monthly home loan payments may go down.

Now that might sound frightening if you've ever lived in an era when interest rates shot up dramatically.

ARMs are attractive because they offer start rates that are lower than the interest rates of fixed rate home loans. This typically enables you to begin with lower monthly payments and qualify for a larger loan.

Reasons an ARM might be right for you:

  • You are planning to move in a few years and thus aren't as concerned about possible rate increases
  • You're confident your income will rise enough in the coming years to handle any increase in payments
  • You need a lower initial rate to afford to buy the home you want

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