30 Year, 20 Year, and 15 Year Loans - fixed interest rate and payment for the entire length of the loan.

10 year ARM - fixed interest rate and payment for the first 10 years then adjusting periodically every year after until the end of the loan amortized over 30 years.

7 year ARM - fixed interest rate and payment for the first 7 years then adjusting periodically every year after until the end of the loan amortized over 30 years.

5 year ARM - fixed interest rate and payment for the first 5 years then adjusting periodically every year after until the end of the loan amortized over 30 years.

3 year ARM - fixed interest rate and payment for the first 3 years then adjusting periodically every year after until the end of the loan amortized over 30 years.

1 year ARM - fixed interest rate and payment for the first 1 years then adjusting periodically every year after until the end of the loan amortized over 30 years.

Balloon Loans [back to top]

15/30 Balloon - The loan payment is figured on a 30-year payoff but a lump sum (or balloon) payment must be made to pay of any remaining balance after 15 years.

7/23 Balloon with extension option - The loan payment is figured on a 30-year payoff but a lump sum (or balloon) payment must be made to pay off any remaining balance after 7 years. The extension option allows for the interest rate to be readjusted after the 7th year and fixed for the remaining 23 years of the loan.

5/25 Balloon with extension option - The loan payment is figured on a 30-year payoff but a lump sum (or balloon) payment must be made to pay off any remaining balance after 5 years. The extension option allows for the interest rate to be readjusted after the 5th year and fixed for the remaining 25 years of the loan.

3/23 Balloon with extension option - The loan payment is figured on a 30-year payoff but a lump sum (or balloon) payment must be made to pay off any remaining balance after 3 years. The extension option allows for the interest rate to be readjusted after the 3rd year and fixed for the remaining 27 years of the loan.

2/28 Balloon with extension option - The loan payment is figured on a 30-year payoff but a lump sum (or balloon) payment must be made to pay off any remaining balance after 2 years. The extension option allows for the interest rate to be readjusted after the 2nd year and fixed for the remaining 28 years of the loan.

Loan Programs [back to top]

Conforming- Loans meeting all criteria to be purchased by government backed agencies Fannie Mae & Freddie Mac.

Jumbo - Loans outside of the criteria for purchase by Fannie Mae & Freddie Mac. Usually for amounts above $417,000.

Super Jumbo - For loans generally greater than $650,000.

No documentation loan - This loan is given based on down payment and credit only requiring no proof of income or money in savings.

Combination 1st & 2nd 80/20 - 80/15/5 - 80/10/10 - These loans (titles refer to value of first mortgage to second mortgage to down payment) refer to two loans that when combined do not require mortgage insurance for loans above 80% of the value of the property. The first mortgage must always be at or below 80% of the value of the property. A second mortgage is used simultaneously at any combined value up to 100% of the total value of the property to lower the total mortgage payment when compared to most loans of the same combined value when mortgage insurance required.

Interest only loans - Loans that charge the borrower interest only and do not require the principal portion of the mortgage making the monthly payment less but keeping the original loan balance the same.

0 point and 0 closing cost options - These loans are set up so that the points and closing costs are paid by the mortgage company or the seller of the property but not by the party financing the property.

Multi unit and non-conforming properties - Properties with more than one dwelling unit or unusual properties that do not meet a standard lender's requirements.

All credit levels from A through current foreclosure
and BK - These loans provide financing for borrowers with all types credit issues, past or present.

Investment and Vacation property financing - These loans provide financing for second homes, vacation properties, or rental properties.

Adjustable Rate Product Indexes [back to top]

1 year treasury bill index
11th district cost of funds average index (COFI)
12 month treasury average index (MTA)
6 month London Interbank Offered Rate (LIBOR)