The following is a partial list of programs offered by Northwest Mortgage Advisors with a brief description of the key elements of each. For a complete list of the programs that we offer, please contact us at 541-526-7210.
These materials are not from HUD or FHA and were not approved by HUD or a government agency.
A popular loan type, conventional fixed rate loans feature a constant interest rate for the life of the life. Generally speaking, monthly payments remain constant. Traditionally borrowers are expected to provide a 20 percent down payment though this is not necessarily required. Available terms for conventional home loans generally range from 10 years, 15 years, 30 years and 40 years.
Adjustable rate mortgages (ARM Loans) are home loans where the interest rate is recalculated on a yearly basis depending on market values. As interest rates are adjusted so is the borrower’s monthly payment. While interest rates on Adjustable Rate mortgages are generally lower than fixed rate loans they can eventually become higher. Various types of ARM loans include Hybrid ARMs such as 10/1 year, 7/1 year, 5/1 year and 3/1 year programs.
FHA Home loans are private loans insured by the federal government. These loans are popular with borrowers who don’t have enough funds to pay a traditional 20 percent down payment because they only require 3 percent down to qualify. Those who choose FHA loans are required to pay mortgage insurance which slightly increases their monthly payments. Lenders who wish to offer these loans must be approved by the Department of Housing and Urban Development.
Like a FHA loan, VA home loans are private loans insured by the federal government. VA loans are only available to qualified military veterans and their families. These home loans are only available to these individuals for their own primary residences and cannot exceed a $417,000 loan limit.
A jumbo loan, or non-conforming loan, usually means any home loan for amounts higher than $417,000. Jumbo loans feature similar Home loan programs to fixed rate and adjustable rate programs. There are even FHA jumbo loans. The main difference between jumbo loans vs conventional loans is the interest rate. Because jumbo loans are riskier for lenders they usually have higher rates.
Reverse mortgage loans, also known as reverse equity loans, are only available to homeowners 62 or older. This program pays the homeowner either a one-time large payout or monthly installment. Once the loan term expires the house either becomes the property of the lender or the house can be sold to repay the debt. Reverse mortgage loans are great options for seniors looking to increase their monthly incomes.