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Erskine Group simply the process for you and get you the
mortgage that you need. Listed below are some of the loan
products we have available today.
Fixed Rate Mortgage
- A fixed rate mortgage is a
loan where the interest rate and monthly loan payment remain the
same for the life of the loan.
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100% Financing Loan
- The 100% financing loan allows
families with good credit to qualify for a mortgage without a down payment
or closing costs. The requirement is that the property is owner occupied. It
normally requires the use of both first mortgage and a second mortgage.
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Adjustable Rate Mortgage (ARM)
- An adjustable rate mortgage
is different from a traditional fixed rate mortgage because the interest
rate can fluctuate during the life of the loan. Adjustable rate mortgages
generally have lower initial interest rates than fixed rate mortgages and
can save you a substantial amount of money if rates remain steady or drop.
On the other hand, when financial markets are unstable, adjustable rate
mortgages can increase with little notice.
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Introductory Rate ARMs
- There are several adjustable rate
mortgages that are available to homeowners. These include the 6-Month
Certificate of Deposit ARM, the 6-Month Treasury Average ARM, the 12-Month
Treasury Average ARM and the 1-Year Treasury Spot ARM. ARMs interest rates
can fluctuate in the market. These ARMs have different rate caps -
Periodic Rate Cap, Payment Caps, and Lifetime Caps.
Periodic Rate Caps limit how much your payments can rise at one time.
Payment Caps are offered in some ARMs. Payment Caps limit the payment
amount that can rise over the life span of the loan. Lifetime Caps limit
how the interest rate can rise during the life of the loan.
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Balloon Mortgage
- A balloon mortgage is a loan which
is amortized for a longer period than the term of the loan. Usually this
applies to a thirty-year amortization and a five-year term. At the end of
the loan's term, the remaining outstanding principal on the loan is due.
This remaining payment is known as a balloon payment.
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Reverse Mortgages
- A reverse mortgage is a unique type
of loan used by the elderly to convert the equity in their homes into
cash. The money from a reverse mortgage can provide seniors with the
financial security they need to fully enjoy their retirement years. The
reverse mortgage has earned its name because the payment stream is
"reversed." Instead of making monthly payments to a lender, as with a
regular first mortgage or home equity loan, a lender makes payments to
you. The money from a reverse mortgage can be used for anything from daily
living expenses to home repairs and home modifications. To qualify for a
reverse mortgage you must be at least 62 and own your own home. There are
no income or medical requirements to qualify. You may be eligible for a
reverse mortgage even if you still owe money on a first or second
mortgage. In fact, many seniors obtain a reverse mortgage to pay off a first
mortgage.
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Full Document Loan
- A full
document loan is when the borrower is required to present all necessary
documents for income verification. This type of loan usually offers lower rates
because it is less risky for the lender.
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Stated
Income Loan
- Stated income
loan requires less
documentation to obtain the loan. This loan type is usually for those that
are self-employed or for those who do not have documentation of earnings
to state on the mortgage application.
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Types of Standard ARMs
- ARMs
with different indexes are available for purchases and refinances. The
interest rate and monthly payment varies on the change made on the index
rate of the ARM product - see below.
- 6-Month
Certificate of Deposit (CD) ARM - This program has a maximum
interest rate adjustment of 1% every six months. This CD index usually
reacts quickly to changes in the market.
- 6-Month
Treasury Average ARM - Like the 6-Month CD ARM, this program
has a maximum interest rate adjustment of 1% every six months. This
program reacts slowly to the changes in the market, therefore
adjustments in the ARM interest rate lag behind some other market
indicators.
- 12-Month
Treasury Average ARM - This program has a maximum interest
rate adjustment of 2% every 12 months. The Treasury Average reacts
slowly to market fluctuation, therefore the ARM interest rate will lag
behind some other market indicators.
- 1-Year
Treasury Spot ARM - This program has a maximum adjustment of
2% every 12 months. This program reacts slower than CD index but faster
than Treasury Average.
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