More Loan Programs We Offer

Obtaining a mortgage is probably one of the most significant things we can acquire. There are multiple types of mortgage loans; just as we’ve discussed in previous blogs. This blog will be discussing three more specific types of mortgages we offer.

The three loan programs we will be discussing are:

• Interest Only Loans
• Buydowns
• Balloons

Interest Only Loans are offered to provide for mortgage payment flexibility by not requiring the borrower to pay principal on a monthly basis. This can be advantageous for qualifying purposes or for the individual who has the financial where-with-all to pay principal at their discretion. They may choose to use the money that would be applied to their principal for other purposes such as paying off a second trust or other debts. Interest Only Loans are available for only a select few mortgage products.

Buydowns offer a lower interest rate for the first 1, 2 or 3 years of the loan. This allows for easier qualifying and for the borrower to gradually ease into their increased final mortgage payments. The buydown is typically accomplished by the use of points which can be paid by the purchaser, seller or builder. Your loan officer can provide a specific breakdown for your financing needs.

A balloon mortgage is one that has a regular monthly payment fixed for a specific period of time - usually 5 or 7 years. These loans are amortized typically over 30 years. At the end of the fixed 5 or 7 year period, a final lump sum (balloon payment) may be due. In some circumstances, the loan can continue for the remaining 30 years based on current market rates. Please consult with your loan officer about these possible provisions.

As you can see from this blog and a few previous, we offer many options to help you achieve your next home. Intercoastal Mortgage Company is perfectly poised to assist you in not only the purchasing of the home, but all the necessary things involved with it. All it takes is a phone call to begin the process of pre-approval which will be followed by you and us finding the perfect home for you. Contact me to start the process and obtain your first or next home through a quality lender that strives to be the best.