Conforming Loans

These loans must meet the minimum income, assets and credit guidelines established by Fannie Mae and Freddie Mac. The Conforming loan limit is currently $417,000.

Fixed Rate Mortgages:
The rate for a fixed rate loan will remain the same throughout the entire term of the loan. The rate will not vary. The most popular fixed rate mortgages are a 30 year, 25 year, 20 year, 15 year and 10 year.

ARM:
(Adjustable Rate Mortgage) the interest rate for an adjustable rate mortgage will adjust at the completion of a specific time period. The interest rates are tied to specific indexes and are best for borrowers who know that they will not be in a home for a long period of time. Adjustable/ variable rate mortgages are usually fixed for three, five, seven or 10-year periods, but may start to adjust after that, in accordance to the index that it is tied to. The main advantage of an ARM is to get an initial lower interest, therefore reducing your monthly payment.

Interest Only Loan:
Only the interest on the loan is required to be paid each month. Any additional payments are applied to the principal amounts of the loan. There are both Interest Only ARM and Interest Only Fixed Rate Programs. These mortgages are ideal for borrowers who would like to minimize their monthly payments.