Fixed Rate
A fixed rate mortgage has a constant interest rate that remains for the life of the loan. The biggest advantage of having a fixed rate is that the borrower does not have to worry that the rates will increase.
Interest rates change based on the business market on a daily bases. Fell Free to give us a call and see what interest rates are available to you.
Adjustable-Rate
- With an Adjustable Rate Mortgage (ARM), the interest rate may go up or down. Many ARM’s will start at a lower interest rate than fixed rate mortgage. This Initial rate may stay the same for months or years. When this introductory period is over, your interest rate will change and the amount of your payment will likely go up.
Components of ARMs
- Index- referred to as the cost of money. Because of the market forces, the index fluctuates, during the term of the loan, causing the borrowers actual interest rate to increase and decrease
- Margin- referred to as a spread. Remains fixed or constant for the duration of the loan
- Rate Adjustment Period- the length of time between interest rate changes with ARMs
- Interest Rate Caps (if any)- limit the number of percentages points an interest rate can be increased during the term of a loan, helps to eliminate large fluctuations in mortgage payments
- Interest Rate Floor- where the ARM begins. Is the period of time subject to the initial, start, or teaser interest rate
- Conversion Option (if any)- gives the borrower the right to convert from an adjustable rate loan to a fixed rate loan
Tips: Know How ARMs Adjusts
- How high your interest rate and monthly payments can go with each adjustment
- How frequently your interest rate will adjust
- How soon your payment could go up
- If there is a cap on how high your interest rate could go
- If there is a limit on how low your interest rate could go
- If you still be able to afford the loan if the rate and payment goes up to the maximum allowed under the loan contract
Do not assume you’ll be able to sell your home or refinance you loan before the rate changes.
The value of your property could decline or your financial conditions could change. If you can’t afford the higher payments on today’s income, you may want to consider another loan
Conventional Loan
Conventional mortgages are the most popular option for borrowers looking to purchase or refinance a home. Borrowers may choose between fixed and adjustable rate mortgage with terms from 10 to 30 years. Conventional mortgages are not insured or guaranteed by any government agency and may be sold to Fannie Mae or Freddie Mac.
Many borrowers enjoy the consistent monthly payment that comes with a fixed rate conventional loans, as this tends to make budgeting easier. However, Adjustable Rate Mortgage (ARMs) may make the initial payment lower with the payment adjusting after the fifth, or tenth year and every two years after for the term of the loan.
Why Get a Conventional Loan?
- Put down as little as 5%
- If you’re a first-time home buyer, you can put down as little as 3%
- Credit score as low as 620 may be accepted
- Fixed rates offer consistent monthly payments and simplify planning and budgeting
- ARMs may have lower initial monthly payments than fixed-rate loans and adjust after the fixed term
- Available for purchase, refinance, or cash-out refinance
Federal Housing Administration (FHA)
A low down payment could open the door to you new home! Insured by the Federal Housing Administration, FHA loans are generally more flexible in credit, income, and down payment requirements making them a secure choice for borrowers who might not qualify for conventional loans.
Why Get an FHA Loan?
- Put down as little as 3.5% for fixed-rate loans
- Credit score as low as 580 may be accepted
- Fixed and adjustable rates are available
- It’s possible to refinance a conventional loan into an FHA loan
- FHA to FHA streamline refinances do not require an appraisal
- Available for cash-out refinance or rate & term refinance
- FHA-eligible down payment assistant programs allowed with Cardinal Financial approved program
Veterans Affairs Loan (VA)
We proudly offer home financing to those who serve and have served our country. If you’re a veteran or an active duty servicemembers, there’s no better mortgage product for you. Guaranteed by the U.S. Department of Veterans Affairs, VA loans are specially designed with exclusive benefits-like flexible requirements and favorable terms for veterans, active duty servicemembers, and eligible surviving spouses. Available program include purchase and refinance options.
Why Get a VA Loan?
- 0% down payment
- Credit scores as low as 580 may be accepted
- Lowest interest rates available for qualifying borrowers
- No monthly Private Mortgage Insurance (PMI)
- Available for purchase or cash-out refinance
- Streamline refinance (IRRRL) with no appraisal and minimum documentation (current VA loans only).
Jumbo Loans
Are you buying a luxury home? Looking for a loan greater than the conventional loan limit? Jumbo loans make it possible for borrowers to purchase properties with low interest rate and loan amounts up to $3M. We offer a wide variety of Jumbo loan products, including fixed and adjustable rate mortgage. We also carry an interest-only option, which means your monthly payment is all interest and no principal. If you have a high credit score, low debt-to-income ratio, and a sizable down payment, a Jumbo loan may be the best choice for you.
Why Get a Jumbo Loan?
- Put down as little as 10%
- Credit scores as low as 660 may be accepted
- Loan amounts up to $3M
- Low interest rates for qualifying borrowers
- Fixed rate, adjustable rate, and interest-only adjustable rate
- May be used for primary residence, second home, or investment property
USDA
Searching for a home in a rural area? We help make it happen with 100% financing and flexible credit and underwriting terms. Insured by the U.S. Department of Agriculture, USDA loans are mortgages made specifically for rural properties. The USDA’s Single Family Housing Guaranteed loan program is a popular choice for low and moderate-income families looking to purchase or refinance a home. USDA loans are an affordable method to obtain adequate, decent, and safe housing in rural areas. eligible applicants may build, rehabilitate, or relocate a dwelling in an eligible rural area
Why Get a USDA Loan?
- 0% down payment
- Credit score as low as 580 may be accepted
- Low to moderate income may qualify
- Borrower must be a U.S. citizen, non-citizen U.S. national, or qualified permanent resident alien
- Available for purchase, rate & term refinance, or streamline refinance
