103% LTV Conventional Home Loans and Mortgages

The 103% LTV is a conventional fixed rate home loan where the monthly payments remain the same over the life of the loan. Once the mortgage is in effect, the interest rate does not fluctuate but remains constant. Furthermore, the loan is 103% of the sales price of the home. This allows for 3% of the loan amount to be used towards the buyer's closing costs.

The fixed rate loan is one of the most commonly used mortgages for residential financing in America. The greatest advantage for a home buyer is the predictability of the payments each month because it never changes. This type of loan is often recommended for home buyers living on a fixed income, a set budget, or those planning on living in their home for more than five years. If interest rates increase, the loan rate will remain the same. Unfortunately should rates decline below the set interest rate on the loan, the only way to change it is to refinance the mortgage and incur a loss of equity or additional closing costs to take advantage of the lower interest rate.

The key disadvantage of this type of loan is the high loan amount in relation to the value of the home. Generally a home buyer must occupy the home for at least three to five years before he/she is able to cover normal selling costs should that become necessary. Otherwise there may not be enough equity to cover real estate commissions and typical seller costs when the home is sold.

107% LTV Conventional Home Loans and Mortgages

The 107% LTV is a conventional fixed rate home loan where the monthly payments remain the same over the life of the loan. Once the mortgage is in effect, the interest rate does not fluctuate but remains constant. Furthermore, the loan is 107% of the sales price of the home. This allows for 3% of the loan amount to be used towards the buyer's closing costs and an additional 4% to be used towards paying off consumer debt.

The fixed rate loan is one of the most commonly used mortgages for residential financing in America. The greatest advantage for a home buyer is the predictability of the payments each month because it never changes. This type of loan is often recommended for home buyers living on a fixed income, a set budget, or those planning on living in their home for more than five years. If interest rates increase, the loan rate will remain the same. Unfortunately should rates decline below the set interest rate on the loan, the only way to change it is to refinance the mortgage and incur a loss of equity or additional closing costs to take advantage of the lower interest rate.

The key disadvantage of this type of loan is the high loan amount in relation to the value of the home. Generally a home buyer must occupy the home for at least three to five years before he/she is able to cover normal selling costs should that become necessary. Otherwise there may not be enough equity to cover real estate commissions and typical seller costs when the home is sold.

Second Mortgages:

• 30 Year Fixed Rate - the interest rate is fixed for 30 years and the loan is fully amortized (or paid off) in 30 years if the normal payment schedule is followed.
• 15 Year Fixed Rate - the interest rate is fixed for 15 years and the loan is fully amortized (or paid off) in 15 years if the normal payment schedule is followed.
• 30/15 (30 due in 15) - the rate is fixed for a 15 years and the payment is amortized over 30 years to provide for a lower monthly payment. This loan is due and payable as a balloon loan at the end of 15 years.

Home Equity Lines:

• Prime Rate - an equity line of credit with a loan term ranging from 15 to 25 years. The rate is based on the prevailing prime rate, which is added to a fixed margin depending upon a borrower's individual credit and equity. The line of credit offers check-writing privileges and interest is paid only on the funds drawn from the account. A draw period exists from which a borrower may access the funds after which the repayment period begins so that the equity line is fully paid at the end of the term.

Payment Option ARM (comming soon ...)