The Florida Website for Nations Lending - Providing Home Mortgages throughout the State
Whether you are a new home buyer - purchasing your very first home - or if you are looking to refinance your existing mortgage to get a lower interest rate or need an equity loan to get cash for home improvements, debt consolidation or for other purposes ... we have a program for you. And .. don't feel that "less-than-perfect" credit or not having enough cash in the bank prevents you from owning your own "dream house" ... we also have mortgage programs for you.
Mortgage Types and Terms
Option ARMs - Fixed Rate Mortgage - ARM's
Jumbo Mortgages - Reverse Mortgages - 2nd Mortgages
HELOCs - Home Equity Line of Credit Loans
Investor Loans - First Time Homebuyers
Option ARM Mortgages
This is a very interesting Mortgage that is becoming very popular - especially for investors and those homeowners who don't intend to stay in the home for more than two or three years. There are many variations of the Option ARM due to the different indexes and margins available. There are four options for loan payments with the "Option" ARM. The first option is a payment based on an interest rate as low as 1.0%. This results in a negative amortization loan with unpaid interest accruing and, basically, being added to the principal balance. This option results in an extremely low payment and is ideal for those homes in high appreciation areas. The second option is an "Interest Only" payment. The interest rate is based on the index plus the margin and results in a payment lower than a 30 year fixed. This option makes the interest payment evey month (so there is no negative amortization) but there will be no reduction to the principal balance. The third and fourth options of the Option ARM allows the borrower to fully amortize the mortgage over a 15 or 30 year period. Because this is an Adjustable Rate Mortgage, the effective interest rate can change- depending on the rate of the Libor, MTA, etc. index.
Payment Example: On a $350,000 Loan amount, the Option ARM starting payments would be:
Option 1: $1,126.00 per month (The payment will increase 7.50% in the respective years of 2 - 5)
Option 2: $$1,677.00 per month ( Based on the starting effective interest rate of 5.75%)
Option 3: $2,042.00 (Based on the starting effective interest rate of 5.75% amortized over 30 years.
Option 4: $2,906.00 (Based on the starting effective interest rate of 5.75% amortized over 15 years.
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Fixed-rate mortgage
This is
by far the most standard mortgage that buyers and homeowners are most
familiar. It has a fixed interest rate and monthly payment that extend
over the life of the loan. That's appealing to many buyers because it
brings certainty to their monthly budgets. On the downside, your payments
won't drop when interest rates do.The most popular fixed-rate mortgages
run 15 and 30 years. However, most lenders will also grant 20 and 40
year mortgages as well.
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Adjustable-Rate Mortgage (ARM)
This one is for those of you who like to take a moderate amount of risk
or if you feel that you'll only be in this home for a few years. The
interest rates on ARMs change periodically. If interest rates go up,
so do your monthly mortgage payments. On the flip side, if interest
rates drop, you save money with lower payments. ARMs fall into two general
categories, with many variations:
One-year ARM's adjust their rate annually. The second type adjusts according to a schedule agreed upon by you and your lender. A 3/1 ARM, for example, gives you a fixed interest rate for three years and an annual adjustment thereafter. Adjustable-rate mortgage terms usually run for one, three, five, seven or 10 years. Most ARMs have caps that limit increases to a certain amount, usually 2 percent at each adjustment and 6 percent over the life of the loan.
Graduated-payment mortgage: This is a good option for buyers who expect their incomes to rise. Basically, a percentage of interest is delayed and added onto the principal. The disadvantage is that your loan balance increases, rather than decreases, for the first few years. Your monthly payments start out low. Then they increase each year by about 5 percent to 7.5 percent, until they include all the interest due with each payment.
Lenders don't generally offer balloon mortgages on homes, but buyers can sometimes obtain one from a home owner willing to finance the house personally. Balloon mortgages require the buyer to pay interest only for a set period of time, usually three to five years, after which the principal comes due all at once. For example, assume you're buying a $100,000 house from an owner willing to finance the sale personally at 8% interest with a 15% downpayment over five years. You will pay $15,000 down to the owner at closing as well as other associated costs. That leaves you with a $15,000 equity in the house, and a debt to the owner of $85,000 remaining to be paid. The ultimate risk with a balloon mortgage is that you will be unable to pay off the balloon or get refinancing at the end of the term, in which case you could lose your home, and all the money you've paid to the owner up to that point.
Other Types Of Mortgage Programs
Bi-Weekly Payment Programs
can reduce the interest paid on your mortgage and build equity more
quickly than you could making the regular monthly payments. Just by
making 13 monthly payments each year, the result is that you can pay
off a 30-year mortgage in approximately 22 to 23 years. BEWARE .. There
are many companies trying to sell "mortgage reduction" programs
- some costing several hundred dollars. Call one of our loan officers
to explain how simple this program is to do .. on your own .. and FREE!
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No-Doc/Low-Doc Mortgages
do not require verification of income. This type of mortgage is generally
recommended if you don't have a steady income, or you are self-employed
and can't prove income via W-2's etc.
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Reverse Mortgages appeal to older
borrowers who own their own home and want to cash in on its equity.
The lender sends the homeowner a payment each month and the homeowner
lives in the house for the remainder of his or her life. Upon the
homeowner's death, the estate must repay the money with interest.
Typically, the home is sold to pay the loan.
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Credit Problem Mortgages:
If you have experienced some credit problems in the past and have "less-than-perfect"
credit, you still may be able to qualify for a home mortgage. Whether
you've had a bankruptcy, judgements, collections and even a prior foreclosure,
we have a program for you. Check our web site section Rates and Credit
to learn how to check your credit and take the necessary steps to improving
your credit scores. If you have additional questions regarding credit
scoring or how your credit situation may affect you, just give one of
our loan officers a call.
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