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Basic loan products at a glance: |
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We are a Direct Lender.
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As a result of our affiliation with numerous major national investors, and as a direct lender, we are able to offer highly attractive mortgage rates and a complete range of products that are extremely competitive within the general marketplace for people with all credit situations. WE OFFER:
| FHA, VA, & Conventional Loans | HOA (Home ownership Accelerator) |
| Fixed & Adjustable Rate Mortgages | MTA, COFI, COSI, and CODI Cash Flow Loans |
| JUMBO Loans | Interest Only Loans |
| Bruised Credit Loans | Stated Income, & No Proof of Income Loans |
| NO DOCumentation Loans (NIV, NINA) | Self-Employed Programs |
| ZERO Closing Cost Loans | First-time Buyers Programs |
| ZERO Down Payment Loans | Foreclosure Help In trouble? We can HELP |
| Below Market Financing | Reverse Mortgages for seniors. Stay in your home! |
Loan descriptions:
| Conforming Loans | Conforming long-term, fixed-rate and adjustable loans that meet conforming loan limits and property and borrower guidelines. This is your 'standard' everyday mortgage loan. |
| Jumbo Loans | Long-term, fixed-rate and adjustable loans that EXCEED the conforming limits. Rates on JUMBO fixed loans are typically a bit higher than standard conforming loans. |
| HOA | Home Ownership Accelerator combines the power of your existing money to pay your loan off in about half the time as a 30-year fixed. Simply open a checking account tied to your mortgage and pay your bills as usual to achieve the amazing results. |
| VA and FHA Loans | Government insured/guaranteed long-term, fixed-rate and adjustable loans. VA allows for ZERO down (you still have closing costs). FHA allows for as little as 2.25% down payment, all of which may be a gift! These loans typically allow for little or no credit, or even some minor bruised credit. |
| Zero Down
2.5% Down 100% Financing 103% Financing |
Ideal for first-time buyers, these low & no down-payment mortgages can help reduce or eliminate nearly every cost associated with obtaining a home loan. These programs typically have slightly higher interest rates which offset the higher risk to the lender, than do regular conforming loans with a minimum of 5% down. These programs typically REQUIRE excellent credit ratings. |
| First-Time Buyers |
If you are comfortably paying more than $900 a month in rent and have two years of rental history, you very well could be a homeowner. We specialize in helping first-time homebuyers of all kinds, but especially those that may have less-than-perfect credit or trouble proving their income |
| Bruised Credit Loans | Allows borrowers with less-than-perfect credit to qualify for competitive interest rates to buy a home, consolidate debt and lower payments or make home improvements. The interest rates are typically higher, but with on-time payments, we can lower your rates in as little as one year. |
| Interest Only Loans | Features the option to pay only low, interest-only payments or principal and
interest payments each month.
Optional principal payments immediately reduce future payments. Lower, interest-only payment may qualify borrowers for more home. |
| No Income Verification Loans. Also known as NO DOC, NIV, Stated income | Ideal for the self-employed, or those with hard to prove incomes. Loans where borrowers agree to put down 10 to 30% equity in exchange for reduced documentation requirements. |
| Option ARM Loans | These products have VERY low start rates, multiple monthly payment options, on very stable indexes. Possibility for negative amortization. Make super low payments, maximize cash flow. Not for someone simply looking for a super low payment on a home they really can't afford. |
How To Choose The Right Mortgage
Choosing the right type of mortgage is not a very easy task. Most people obtain a 30 yr fixed loan. However, this is not always the best choice. You may have to do some homework to evaluate your personal financial situation and then determine the features of available loan programs to analyze how they correspond with your needs. I always discuss the details of your situation with you, then present possibly better loan options you may not have been aware of!
Fixed Rate Mortgages
The most common type of mortgage program where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable.
Fixed-rate mortgages are available for 30, 25, 20, 15, and 10 years. There are also "bi-weekly" mortgages, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 "months" worth, every year.)
Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.
During the early amortization period, a large percentage of the monthly payment is used for paying the interest . As the loan is paid down, more of the monthly payment is applied to principal . A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.
Adjustable Rate Mortgages
These loans generally begin with an interest rate that is one percent (1%) or more below a comparable fixed rate mortgage, and could allow you to buy a more expensive home.
However, the interest rate changes at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up, too. However, if rates go down, your mortgage payment will drop also.
There are also mortgages that combine aspects of fixed and adjustable rate mortgages - starting at a low fixed-rate for seven to ten years, for example, then adjusting to market conditions. Ask your mortgage professional about these and other special kinds of mortgages that fit your specific financial situation.
Another adjustable loan consideration - If you only plan on being in the home a few years, the lower start rate, combined with the adjustment period, could save you a lot of money.
Start by asking yourself these questions:
Budget
What is my current financial situation: income, debts, other expenses: How will
that change with a new house?
Income
What do I think my future income will be? Are there any plans to change my income
stream? Will I be able to absorb future mortgage payment increases?
Assets
What types of assets do I have and how much is available for a down payment and
closing costs? What will my other purchase needs be when I buy a house and how
will I fund those purchases?
Housing Needs
Is this a started home, or your dream home? How fast do I want to build equity?
What are my long term equity needs (retirement funds, college tuition, etc.)?
How Long Do I Plan On Living In This Home
This can greatly effect loan options.
Economic Outlook
What do I feel will be the direction of future interest rate movements? How confident
am I in that view?
Tax Situation
Would I benefit from making a "prepaid interest" payment in the form of discount
points? What will be the impact of this purchase on my tax situation?
Risk
What is my risk tolerance for payment changes? Will I have enough cushion to
absorb a 10% payment increase?
The answers to these questions should assist you in determining which type of loan program you need. A loan program that has a fixed interest rate and a fixed payment for the term of the loan is the most conservative. With an adjustable rate mortgage (ARM) you have the risk of payment increases. However, you may have a lower initial payment and would be able to take advantage of reduced payments if interest rates fall. Most adjustable loans have caps that restrict the amount your rate can increase or decrease at the scheduled Change Dates as well as caps that restrict the overall maximum rate. To fully evaluate an ARM, you must understand the terminology used in describing its features. A glossary of real estate or mortgage terms follows.
Key features with an ARM program that need to be analyzed include the type of index, life and payment change caps, margin, fully indexed rate, negative amortization, start rate, discount points, conversion to fixed rate options, and payment change frequency.
There are many loan programs available, including a variety of fixed rate mortgages, ARMs, and other variations. For example, a fixed rate mortgage may have payments that change or an adjustable rate mortgage may have payments that are fixed for a specified period of time. Or there can be a mortgage with numerous combinations of these features. Because of the many different options available, the best resource to help you evaluate your loan needs will be your Joe Metzler Group Loan Officer.
Jumbo Products
Jumbo conventional loans are loans with loan amounts over $333,700. We offer
a number of loan programs which include fixed rates as well as adjustable rates.
Maximum loan amounts vary depending on loan to value ratios.
ARM Products
We offer a variety of adjustable rate programs. Criteria for these programs will
vary depending on specifics, but the basic programs are as follows:
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Monthly ARM - OPTION ARM adjust each month
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Interest Only
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1/1 ARM -- Fixed rate for 1 year and adjusts each year thereafter
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2/1 ARM -- Fixed rate for 2 years and adjusts each year after the second year
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3/1 ARM -- Fixed rate for 3 years and adjusts each year after the third year
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5/1 ARM -- Fixed rate for 5 years and adjusts each year after the fifth year
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7/1 ARM -- Fixed rate for 7 years and adjusts each year after the seventh year
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10/1 ARM -- Fixed rate for 10 years and adjusts each year after the tenth year
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Balloon Loans - Fixed rate payment (based on 30 year loan), full balance due in 5 or 7 years.
All of these ARMS are based on the 1 Year Treasury Index and all have an annual as well as a "lifetime" cap. Contact me for additional information. Call (651) 552-3681 or EMAIL me with your questions.
OPTION ARM COSI, COFI, and CODI ARMs
Three monthly payment options mortgages. Minimum payment, Interest Only, or a
full PITI payment. Maximize your cash flow and your options. These loans are based
on the 11th District Cost of Funds Index (COFI ARM). They offer VERY LOW start
rates BUT ARE NOT for someone simply looking to have a super low payment on a
home they really can't afford. This is POTENTIALLY a dangerous loan if you don't
understand it correctly.
100% Finance Option
We also offer numerous programs where 100%, 103%, or even 107% of the loan amount
is financed. Not only is there no down payment required, but we may be able to
include all of your closing costs into the loan, allowing you to buy a home with
zero out of pocket expense! These zero down programs typically require excellent
credit ratings.
Other Considerations
Down payment
Down payments vary depending on the type of loan program selected.
Conventional loans usually require a down payment of at least 5%. The borrower must usually demonstrate that at least 3% of the down payment is the borrower's own money. At 20% down, most conventional loan programs do not require insurance against default. Some programs allow the down payment to be borrowed, or even gifted.
Both Fannie Mae & Freddie Mac recently have introduced 3% down programs, and Zero down programs.
FHA programs allow for as little as 2.5% down payment, ALL of which can be gifted.
Points
Points are dollars paid to lending institutions at the time of closing to allow
lenders to make loans at rates lower than existing money market conditions warrant.
Points balance the yield or rate of return lenders get on money they loan.
One point equals one percent of a new loan amount. If a new mortgage calls for two points, it means that two percent of the amount of the loan needs to be paid to the lender up-front at closing. Note that points are calculated on the amount of the new loan, and not on the sale price of the property.
Ask your lender for a 'PAR' rate. This is the rate where you pay NO POINTS. When you compare lenders rates, both may be offering 8.0%, one is at 'PAR' (no points) while the other may want 1 point or more to achieve the same interest rate.
The cost of borrowing money fluctuates according to the demand for money and the supply of money available at any given time. Heavy demands have a major effect on the availability of money. The result is that the supply of money for the home mortgage market is lessened, as it competes for available funds. As the availability of money fluctuates, so do the points lenders require to place their money in the home mortgage area.
Points on Conventional financing may be paid by either the buyer or the seller, and are therefore negotiable. Even though negotiable, in many instances buyers cannot afford financing a given house if they must also pay points. Therefore, sellers often see their best interests being served by agreeing to pay some or all of the points needed to make the sale. Points are tax deductible for the borrower whether they are paid by the buyer or seller paid. There are some limitations to the amount of seller contributions under all programs. For more information consult your Loan Officer.
Closing Costs
Closing costs vary slightly with various loan programs. Click HERE to review a breakdown of closing costs. Please note that some of the costs are based on loan amount and will vary dramatically
(i.e., origination fee, title insurance and mortgage registration tax).
Rate Locks
Rates may be locked anywhere during this process, from time of application until
three days prior to closing. We do not make the lock decision for you, but will
help guide you in your decision based on our experience.
ALT Doc
Many loan types and programs allow for Alternative Documentation in place of
the usual verifications of Employment, Verifications of Deposit and Verifications
of Rent or Mortgage. By providing your Loan Officer with the necessary Alternative
Documentation, or "Alt Doc", you may be allowing for an immediate decision on
your loan. As income, assets and debt must be verified to make a loan decision,
the process of "Alt Doc" may very well nullify the need for verifications to be
sent out, filled out and returned. Getting these verifications returned is often
the reason for delays in the mortgage process. So, any amount of "Alt Doc" you're
able to provide is likely to speed up your loan process!
Stated Income
A variation of the ALT DOC loan, stated income loans are perfect for the self
employed. As the name implied, we do not need to prove what your income is.
Bruised Credit
We have have loan programs available for everyone. From perfect credit, to recently
discharged bankruptcies, and everything in between. Don't automatically assume
you can't get a loan with bruised credit. In today's mortgage market, that simply
isn't true. These loans get you the house today, while you repair your credit
for the future, then allow you to refinance into a lower interest rate loan.
Mortgage Only program
A purchase or refinance program for those with bruised credit. We only look at
how you have performed on your current mortgage. Late payments on credit cards,
car loan, student loans, bankruptcies, etc. are not used in the decision process.
RENT Only program
A purchase program for those with bruised credit. We only look at how you have
performed on your rent. Late payments on credit cards, car loan, student loans,
bankruptcies, etc. are not used in the decision process.
Cash Out Refinance
You may be able to get 'cash out' against the value of you home for any reason.
Loan to value limitations apply.
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