How To Choose A Loan Program

It is difficult to choose a loan program from so many options available that is best for you and your family. It is essential to consider your lifestyle, your family's future needs and your retirement plans.

National Lending Corporation - personal loans loan mortgage mortgages

Compare loan programs, rates, and payments to assist you in choosing a loan. Think about how long you plan to keep the loan. If you plan to sell the house in a few years you may want to choose a loan program like an adjustable or balloon loan. On the other hand, if you plan to keep the house for a longer time, you may want to look at fixed loans.

Understand the relationship between rates and points. Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan. So for example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower the rate you will get.

Compare different programs. Shopping for a loan can be difficult. With so many to choose a loan program from, each of which has different rates, points and fees, it's hard to figure out which program is best for you. So a mortgage broker can be your best bet here.

The National Lending Corporation's trained, professional mortgage consultants can help you find a loan program tailor-made for your needs.

In the home loan world, there are two types of loans -- those with fixed interest rates, and those with variable interest rates. A large variety of fixed-rate and variable-rate loans accommodate each borrower’s needs and preferences.

Fixed-Rate Home Loans

The most popular home loan is the traditional fixed-rate mortgage. Generally this interest rate is a little higher that the initial rate you receive with a variable-rate mortgage. But what makes this loan so popular is that with a fixed-rate loan, you have the assurance that your interest rate will never rise.

Also, your monthly payments of interest plus principal will always remain the same. If you choose a loan program and are the kind of person who prefers the stability of knowing exactly how much you will pay each month, this could be the ideal loan for you.

Why are down payments so low on some properties?

These are offers that lenders make, but they are not ideal for everyone. A borrower must qualify for the exact loan offered.

Remember that in many cases, the lower the down payment, the higher the monthly payment, and the higher the probability that the borrower needs to purchase mortgage insurance.

If you are interested in a loan with a low down payment, ask us about getting one. We offer many types of loans with low down payments and less stringent qualification guidelines.

Variable-Rate Home Loans

In recent years, the Adjustable-Rate Mortgage (or ARM) has become famous for its low initial interest rate. The primary advantage of this loan is that it permits you to qualify more easily for a loan, or to get a larger loan.

Due to the fact that the variable-rate home loan is based on a published rate called an Index, your interest rate can rise or fall, meaning that your monthly payments can also increase or decrease.

Variable-rate home loans can even save you money in the long run, if interest rates remain constant or fall.

Additional Types of Loans

In addition to offering you home loans, your lender also offers you to choose a loan program from a variety of loans for home improvement, to help you save energy, and to consolidate your debt. Ask your trusted lender about this.

Special Loan Programs

We offer special types of loans that cover the cost of the home, as well as the costs of needed repairs or improvements. This type of loan is based on the value of the home after the repairs/improvements are made.

LOAN PROGRAM ADVANTAGES DISADVANTAGES
Pick A Payment Plan You have control of your mortgage with flexible monthly payments. You to choose from 4 payment options each month: - Minimum Amount Due - Interest Only Payment - 30 Year payment Plan - 15 Year Payment PlanOptimal cash flow.Rates and payments may go down if rates improve. Payments may change over time.
LIBOR LOANS

6 month ARM1 month ARM

The payments are adjusted monthly or every 6 months based on the index and the margin.

Interest rate is recalculated each month based on the current rate and the remaining balance of principal.

30-year term with 5-year interest only option.

Payments will change monthly or semi-annually.

After 5 years, balance of loan is amortized across 25 years.

Remaining balance will continue to be adjusted monthly or semi-annually during the repayment phase.

INTEREST ONLY LOANS Helps you manage your cash flow and potential tax liability.

Each month for the first 10 years you have the option of only paying the interest due on your loan.

Still builds equity in your home.

 Payments may change over time.

Does not reduce principal.

FIXED RATE MORTGAGES Monthly payments are fixed over the life of the loan.

Your interest rate does not change, so you're protected if rates go up.

You can refinance if rates go down.

10,15,20, 30 and 40-year options.

 Interest rates are higher, resulting in higher mortgage payments.

Rate does not drop if interest rates improve.

ADJUSTABLE RATE MORTGAGES

7/1 ARM
5/1 ARM
3/1 ARM
1 year ARM

Lower monthly payments.

Rates and payments may go down if rates improve.

May qualify for higher loan amounts.

Fits mobile lifestyles.

 Payments may change over time.

Potential for higher payments if rates go up.

BALLOON MORTGAGES Lower payments over a shorter period of time.

Many balloon mortgages offer the option to convert to a new loan after the initial term.

5 or 7-year term.

Risk of rates being higher at the end of the initial fixed period.

Risk of foreclosure if you cannot make balloon payment, refinance or exercise the conversion option.

FIRST TIME HOME BUYERS Lower down payment.

Easier to qualify.

Sometimes you may get lower rate.

 May be subject to income and property value limitations.

Some programs that have government subsidies may have a recapture tax if you sell the house too early.

STATED INCOME Doesn't require income verification.

Faster approval.

 Higher rates

Higher down payment

NO DOCS LOANS Don't need to verify income or assets.

Very little paperwork.

Fast approval.

 Higher rates

Higher down payment

IMPERFECT CREDIT PROGRAMS Potential for reestablishing credit if you pay your mortgage on time.

When used for debt consolidation, you may be able to reduce your monthly debt payment.

Shorter terms allow you to refinance for a better rate once you've re-established your credit.

Higher rates

Harder to get long term fixed loans

Loans may have prepayment penalties.

CASH OUT REFINANCE Allows you to receive cash from the equity in your home.

You can consolidate debt and lower total monthly payments.

Offers revolving lines of credit using real estate as collateral.

Monthly payments may be higher.

Typically higher rates.

HOME EQUITY LINE OF CREDIT
HELOC 		You only borrow what you need.

Pay interest only on what you borrow.

Operates similar to a credit card. Flexible access to funds.

Rates can change. The maximum interest rate is normally high.

Payments can change.

Harder to refinance your first.

REVERSE MORTGAGES Increases cash flow for homeowners age 62 and above.

No monthly payments required.

Owners can receive lump sum, monthly payments, lines of credit (in some states) or a combination.

 Clients must take a course to be eligible.

Heirs may be opposed.

If client moves, the loan must be paid back.

For a detailed description of various loan programs, click here.

Got questions about mortgage loans?
Please note that all fields followed by an asterisk must be filled in.
First Name*
E-mail Address*
State/Prov
Country*
Home Phone

Please enter the word that you see below.

  



National Lending Corporation - personal loans loan mortgage mortgages

Go back from Choose A Loan Program to National Lending Corporation

Go back from Choose A Loan Program to Arizona Best Mortgage Interest Rate

Return to Arizona4Pinoys Home


footer for choose a loan program page