At Mortgage House of America, we focus exclusively on obtaining the highest value for each of our clients. We deal directly with lenders to find the best-suited loan product at a great price to suit every unique situation. Shopping around can be confusing and difficult in a constantly changing mortgage market, but our experienced loan officers make finding your way easy. With at least ten years of experience each, each loan officer can guide a client to the best product to suit their unique financial needs.
When choosing a loan product, there are a myriad of factors to consider. How long will I be in my home? How long until I’ll refinance? Are mortgage rates going up and down? Will I need extra money to work on the house? Will my mortgage allow me room to breath in a financial emergency? With their experience and extensive product knowledge, our loan officers can help you answer all of your questions and plan for your family’s financial future.
The following glossary provides some information for you to consider in applying for a loan. However, only an experienced loan officer can advise you of all of the pros and cons of a loan product for your situation.
Fixed-Rate Loan: Fixed rate loans are considered "plain vanilla" mortgage loans, and are generally considered the least risky loan option. The rate on this loan will not change for the life of the loan, which can range from five to 30 years.
Adjustable Rate Loan: Commonly referred to as ARM’s, these loans offer a rate that changes in accordance with the market. They generally remain fixed for an initial period from one to seven years, and then adjust yearly based on a certain index and margin. Although considered risky, many homeowners with ARM’s have seen their rates drop significantly in the last few years without having to refinance.
Balloon Loan: Balloon loans offer the advantage of a smaller payment in the short term. A loan is given out for a short term-generally 15 years-but with a payment set as though the loan will be paid off in 30 years. While the lower payment is a great advantage, especially when extra cash is needed in the short-term, you must be prepared to pay off or refinance the loan at the end of the balloon period.
Home Equity Line of Credit: Commonly called a HELOC, a home equity line is a loan taken against a home’s equity than can be paid off and drawn from as needed. They are generally considered "subordinate" to a conventional mortgage loan, which can only be paid down and cannot be increased without refinancing.
FHA: The Federal Housing Administration, a government-sponsored agency, insures a bank’s loan against default, giving more consumers access to the Capital Markets. FHA loans also allow a smaller down payment in the case of a purchase, or less equity in a refinance than conventional loans.
VA: Loans insured by the Veteran’s Administration are offered to current and former service members who meet certain criteria.
Jumbo: A jumbo loan is any loan with a balance greater than $417,000, no matter what structure the loan takes. MHA specializes in securing jumbo loans.
Relocation Loan: Relocation loans are more complex than regular home purchase loans. By using our strong relationships with lenders, realtors and other service providers Mortgage House of America has developed an extensive Relocation Home Loan Program. Our borrowers could be relocating from another state or another country so regardless of where you’re moving from, MHA has an exceptional relocation program which will help your family transition as painlessly as possible to your new community.