Indiana Real Estate Post

Adjustable Rate Mortgage (ARM)

An ARM is a mortgage with an interest rate that may vary over the term of the loan -- usually in response to changes in the prime rate or Treasury Bill rate. The purpose of the interest rate adjustment is primarily to bring the interest rate on the mortgage in line with market rates. Mortgage holders are protected by a ceiling, or maximum interest rate, which can be reset annually. ARMs typically begin with more attractive rates than fixed rate mortgages -- compensating the borrower for the risk of future interest rate fluctuations. Choosing an ARM is a good idea when: Interest ra...

April 9th, 2012 | Featured Loan Programs, Adjustable Rate Mortgage (ARM)

Fixed Rate Mortgage

With a fixed rate mortgage, the interest rate does not change for the term of the loan, so the monthly payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be. Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal. A 30 year fixed rate mortgage is the most popula...

April 2nd, 2012 | Featured Loan Programs, Fixed Rate Mortgage

Location Efficient Mortgage (LEM)

Location Efficient Mortgages (LEM) are available to individuals purchasing more expensive homes in areas where with efficient public transportation systems. These loans take into account monies saved on the expenses related to owning or leasing automobiles. LEM loans are only available in certain markets: Chicago, IL Los Angeles, CA San Francisco, CA Seattle, WA Find out more about LEMs.

March 26th, 2012 | Featured Loan Programs, Location Efficient Mortgage (LEM)

B/C Loans

B/C Loans do not meet the credit requirements of Fannie Mae and Freddie Mac. They are known as B, C and D paper loans. Loan applicants typically have a bad credit history, have filed for bankruptcy, or have had a property in foreclosure. B/C Loans are often issued as temporary loans until the applicant can restore credit and qualify for conforming "A" loans. Interest rates on B/C Loans are generally higher than for conforming "A" loans.

March 19th, 2012 | Featured Loan Programs, B/C Loans

Conventional Loans

Conventional loans are mortgage loans offered by non-government sponsored lenders. These loan types include:   Fixed Rate Loans Adjustable Rate Loans (ARMs) Balloon Mortgages and Pledge Asset Loans Jumbo / Construction Loans

March 12th, 2012 | Featured Loan Programs, Conventional Loans

Jumbo Loans

Jumbo Loans exceed the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans. Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes.

February 20th, 2012 | Featured Loan Programs, Jumbo Loans

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8730 N Brookside Blvd
McCordsville, Indiana 46055
317-570-6300
FAX:
ken@indymortgage.com
NMLS: 116854

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