Home Equity Loan Providers Compared Before you start comparing home equity line of credit rates, take a look at some of the differences among major lenders. Read on to learn more about home equity loan providers to see which one might be right for you. LendingTree LendingTree got its start in 1996 when founder Doug Lebda experienced the complicated process of getting a home loan before he bought his first house. His innovative idea to create a method that let banks compete for borrowers’ business launched in 1998. This loan marketplace connects you with lenders in addition to offering informational resources and tools to make it easier to manage your finances. LendingTree advertises rates as low as 2.88% for home equity loans, depending on your credit profile and loan terms. To get a home equity loan, simply fill out the online application. LendingTree then connects you to lenders who offer customized loan offers based on your creditworthiness. If you have a solid credit history, you may receive as many as five loan offers in a few minutes. Once the offers roll in, you can choose the one that works well. LendingTree doesn’t charge any application fees or loan origination fees. The closing costs, processing fees and other loan fees vary from lender to lender. Citibank You have a three ways to apply for a home equity loan with Citibank: online, by phone or at a local branch. This big-name lender offers home equity loans and home equity lines of credit (HELOC). Both loan options include no application fees, no points and no closing costs, although you can choose to pay closing costs for some home loans in exchange for a rate reduction of 0.25%–0.50%. Closing costs range from 2–, 527, and Citibank charges an annual fee during the draw period of a HELOC. HELOC rates are variable and range from 0.59% plus the prime rate to 3.74% plus the prime rate. Fixed-rate home equity loans have an APR that ranges from 5.99%–7.99%. If you choose to have your payments automatically deducted from your bank account, you qualify for lower interest rates than people who opt for another payment method. Wells Fargo In 2015, the Wells Fargo home equity loan phased out of the lender’s line of financial products. Instead, the company switched to only offering HELOCs. It offers several loan types, including a standard line of credit with a variable rate and several lines of credit that feature a fixed-rate advance (FRA) for a specific period before rolling into a variable rate. To understand how Wells Fargo HELOC options work, consider the following table. Rates are based on a borrower with a credit score of 740 who lives in Philadelphia, Pennsylvania. The borrower’s home is worth $300, 000, he owes $100, 000 on his mortgage and he applies for a $100, 000 HELOC. Wells Fargo offers a relationship discount if you have a Wells Fargo account and sign up for automatic payments. Wells Fargo also lowers your interest rates if you pay for closing costs. The amount that you qualify to borrow and the APRs depend on your credit history and the transaction details. Third Federal Third Federal has been providing mortgage and savings products since 1938 when Ben and Gerome Stefanski founded it in Cleveland, Ohio. Third Federal offers several options if you’re looking for a home loan, including fixed-rate home equity loans with 5- and 10-year terms, HELOC and a 5/1 adjustable equity loan, which features a fixed rate for the first 5 years. Home equity loans and HELOCs are offered in the following states: Ohio Florida California Kentucky Pennsylvania North Carolina Virginia New Jersey One of the features that makes Third Federal special is its Lowest Rate Guarantee. If you find a rate lower than the one it offers you, it either matches that rate or pays you , 000. Third Federal charges variable APRs determined by your creditworthiness and the details of your loan. U.S. Bank With its online rate estimate tool, U.S. Bank makes it fast and easy to get an approximation of the rates available based on the value of your home, where you live and the amount of money you want to borrow. Apply for a U.S. Bank HELOC, which has a variable APR, or a fixed-rate home equity installment loan with a term of 5, 10, 15, 20 or 30 years. Variable rates typically range from 3.99%–8.24%. Fixed rates range from 5.99%–8.49%. The application process is simple to complete online. To apply, you need to be age 18 or older, a legal U.S. resident and a current homeowner. The application asks for information about your current mortgage, the estimated value of your home, your Social Security number, the annual household income and your employer’s information. Bank of America Like Wells Fargo, the Bank of America home equity loan offerings were discontinued in 2015. As a borrower, you now have access to the Bank of America HELOC, which features a 10-year draw period and a 20-year repayment term. You can request , 000–, 000, 000 for a primary home and up to 0, 000 for a second home. The lender has zero application fees, no fees for making transfers using online banking, no closing costs on HELOCs of , 000, 000 or less and no fee to convert a variable rate HELOC to a fixed-rate loan option. The fixed-rate loan option lets you convert all or a portion of your Bank of America HELOC to a loan with a fixed rate and predictable monthly payments for the term of the loan. Additionally, members of Bank of America’s Preferred Rewards program qualify for APR discounts of 0.125%–0.375% based on their reward level. Bank of America bases its reward levels on the combined balances in your BOA banking accounts and Merrill Edge or Merrill Lynch Investment accounts. Levels include: Gold: Members carry average combined balances of $20, 000–$50, 000 Platinum: Members carry average balances of $50, 000–$100, 000 Platinum Honors: Members carry average combined balances of more than $100, 000 Chase Chase is a big-name lender with more than 5, 000 branches in 25 states. With no closing costs, easy online banking and rate discounts ranging from 0.25%–0.50% just for having a Chase checking account, Chase offers reasonable terms and a healthy dose of convenience when you borrow here. This lender consistently receives high ratings for its stellar customer service and easy application process. There’s no option for a Chase home equity loan, but the Chase HELOC loan offers competitive terms if you have a good loan-to-value ratio. Chase’s Fixed Rate Lock option lets you convert all or a portion of your HELOC to a fixed rate with predictable payments and no extra fees. Home Equity Loans Basics Before you start shopping for a home equity loan, it’s helpful to understand exactly how this type of loan works. Read on to learn more about the types of home equity loans available and what to expect when you apply. What Is a Home Equity Loan? Even the top unsecured loans can’t beat home equity loans for borrowing power, low APRs and long repayment terms. Often called “second mortgages, ” these loans allow you to access the cash value of the difference between the fair market value of your home and the balance of your mortgage. For example, if you have a home with a fair market value of $300, 000 and a mortgage balance of $100, 000, then you have a total of $200, 000 in equity. You can apply for a loan to borrow against that equity.

Many homeowners pay it and many home buyers try to avoid it … mortgage insurance. You may be wondering, “What’s mortgage insurance and why do I have to pay for it?” Conventional mortgages have private mortgage insurance (PMI). FHA loans have a different insurance structure, and you pay what’s called a mortgage insurance premium (MIP). Here’s more information on both, and how they may affect your payments when you purchase a home or refinance your mortgage. What is mortgage insurance? Mortgage insurance is required for most home loans that don’t have at least a 20% down payment. It’s bought and paid for by the homeowner, but it offers them no coverage. In a nutshell, it’s there to protect the investor (who buys the loan on a secondary market) if the loan goes into default. There are a couple of different types of mortgage insurance depending on your loan. Conventional Loans: Private Mortgage Insurance (PMI) As part of the loan guidelines set out by Freddie Mac, Fannie Mae and most investors in conventional loans, a borrower is required to pay PMI when at least 20% of a home’s purchase price is not provided as a down payment. When obtaining a mortgage, it’s important that you find a loan that fits your specific situation and goals. Quicken Loans offers the PMI Advantage program, in which borrowers can choose a slightly higher interest rate to take advantage of lender-paid PMI. Learn more about PMI Advantage. FHA Loans: Mortgage Insurance Premium (MIP) While conventional loans have more strict underwriting guidelines, FHA-insured loans require a small amount of cash to close a loan. As a result, all borrowers must pay MIP to insure the investor against loss if the homeowner defaults on the mortgage. While there are ways to avoid PMI with conventional loans, there is no way to avoid MIP on FHA loans because the minimum down payment is only 3.5%. Whether MIP can ever come off your FHA loan depends on a few factors, including when it was originated, the amount of your down payment, and the current loan-to-value (LTV) ratio. For originations on or after June 3, 2013, FHA requires MIP to be paid for 11 years if your original LTV is 90% or lower, and for the life of the loan if it’s over 90%. For more details, visit this post. For loans originated as of October 4, 2010, if your FHA term is more than 15 years, your monthly mortgage insurance payments will be cancelled when the LTV reaches 78%. This is calculated based on the original value of your FHA home loan and only if you paid the annual MIP amounts for at least five years. If the term of your FHA loan is 15 years or less, with an LTV of 90% or greater, the monthly mortgage insurance payments will stop when the LTV reaches 78%. Mortgages with an LTV of 89.99% or less will not be charged annual mortgage insurance premiums. If your loan was originated on or after April 18, 2011, FHA made a change to their MIP factors which impacted the 15-year loan. Now, there is MIP on LTVs greater than 78%. LTVs less than or equal to 78% do not require MIP, however not all lenders have followed suit with the 0% MIP on LTVs less than 78%.

Specialty mortgages under the Mortgages for Champions program reduces the red tape, that extra paperwork and so many of the out of pocket costs often associated with residential home mortgage financing programs especially for firemen. Mortgages for firefighters & EMS personnel under the program will eliminate on every mortgage, the Loan Application Fee, the Loan Processing Fee, the Mortgage Underwriting Fee and the Mortgage Commitment Fee and associated Commitment Points which can save as much as 2.00% to 3.00%. Fire Departments, Firefighters, Fire Inspectors, Fire Investigators, Fire Prevention Specialists, EMS personnel, Emergency Medical Technicians and Paramedics may be eligible whether volunteer or paid. All Firemen/ Departments can qualify regardless if the Firefighter is paid or volunteer. Fireman must be presently active. First Time Home Buyer and the Second Time Home Buyer Program or a 203k Streamline to add a new kitchen or more bedrooms for your growing family. Financing for a Single Family Home, a two to four family unit, a condominium or a manufactured home. Financing for a Mixed Usage Commercial Property such as a Store with Apartments. Home Mortgage Programs require very little or NO down payment, competitive low rates and allows more flexible credit criteria. Rate and Term refinance up to a 97.75% Loan to Value of the Appraised Value of your Home. Cash-out refinance mortgage (for any reason) up to a 85.00% Loan to Value.

For most of us, our house is our biggest and most valuable asset. It’s our shelter – our place to be safe and to call home. And for that reason, we want to keep it protected when disaster strikes. Homeowners insurance is a necessary way for us to keep our homes safe from the unpredictable. In some cases, a couple common factors might cause you to change your homeowners insurance company. First, you might switch homeowners insurance companies to save money. If you find an insurer with a better deal, it might be the right time to send your current carrier packing. Shopping around for better policies is an important part of the process, and you should look for the best possible option. The other common reason is that you want to increase or reduce your coverage in a way that cannot be done by your current homeowners insurance company. So, you begin the search for a company that can better meet your custom insurance needs. Making the Switch Whatever your reason is for switching homeowners insurance companies, you’ll want to make this transition in the correct way. Let’s take a moment, from the perspective of a Quicken Loans client, to go through the steps of changing your insurance carrier. Break Up with Your Carrier If you decide to change insurance companies, you must let your old insurance carrier know that your policy needs to be cancelled. Don’t belabor this one – just rip it off like a bandage. Call up your current insurer and break the bad news. Refund the Refund If your old policy hasn’t yet run its course when you cancel, you may receive a refund check from your now-previous carrier. But before you splurge on champagne wishes and caviar dreams, take a few deep breaths and send that fully endorsed check to Quicken Loans. Whoa, whoa, whoa! But that’s your refund! At a first glance, this can seem confusing. Let’s take a second to break down what’s really happening with this refund and how Quicken Loans is involved in the process. When you get a mortgage with Quicken Loans, most clients have something called an escrow account. This is a savings account that’s set up by your mortgage lender. Quicken Loans, as a service to you, will pay your yearly homeowners insurance policy upfront. You’ll pay it back on a monthly basis as part of your regular mortgage payment. This way, your payments are more manageable. But what does this have to do with your refund? Let’s say your yearly policy costs $1200. Quicken Loans pays that upfront, and you’ll pay in monthly increments of $100 as part of your escrow account. After three months of your policy (during which you paid $300 for homeowners insurance), you decide to change insurance companies, meaning you receive a refund from your previous carrier. Since you’ve only had the policy for three months, you will receive a refund for nine months of insurance payments ($900). Beware the Escrow Shortage At this point, if you change homeowners insurance companies, Quicken Loans will again pay for your policy upfront. But if you haven’t sent Quicken Loans the refunded check from your previous policy, you’ll need to pay for both the old policy and the new policy as part of your monthly mortgage payment. This, in turn, could cause something called an escrow shortage, which basically means you don’t have enough money in your escrow account to pay for all of your insurance. It’ll cause your monthly mortgage payment to increase the next time your annual escrow analysis is performed. Instead, send your fully endorsed refund check to Quicken Loans. If you prefer, you can send a personal check for the amount of the refund you received instead. Where Do I Send My Refund? Once you’ve received your refund, you should send it to the following address: Quicken Loans Inc. ISAOA PO Box 202070 Florence, SC 29502 By doing this, you’ll not only be able to take full advantage of your new policy, but you’ll also keep your escrow account in check. If you have questions about this policy or refund, or you’d like more information, feel free to reach out to Quicken Loans at (855) 282-8722, Monday – Friday, 7:00 a.m. – 8:00 p.m. ET.

International Mortgage Associates is a licensed Mortgage Brokerage located in prestigious offices in Kissimmee, just outside Orlando, Florida. Formed by a Director who has nearly 30 years experience in UK Financial Services and International Mortgage Broking and over 10 years experience in the Florida property and Mortgage Market. We are ideally placed to guide US and International clients through the mortgage maze, wherever you choose to buy, but particularly in Florida, the Caribbean and UK. Our mission is to build a dedicated, compliant mortgage team that can provide innovative International mortgage solutions and unsurpassed client service. We are equipped to provide high quality mortgage advice for US and International clients. Whilst we cover our ‘prime’ markets, we also like a challenge, so if you want to buy in another area of the world, let us know and we will use our experience and contacts to source a solution to you. John Brock-Edgar DIP FPS I have been in UK Financial Services in the retail sector for nearly 30 years. I initially held employed positions within many of the leading UK Banks and progressed to Regional Manager level. In 1995 I became an Independent Financial Adviser and International Mortgage Broker, before forming Equus IFM Ltd in 1998 with four partners. Built on a foundation of good cost control and compliant processes we have built the business to employ circa 65 people by 2013. Between 1998 and 2011 I was the Director of the International Mortgage Division. My wife and I bought our first property in Florida in 2003 and despite nearly 30 years experience in UK and International Mortgages, I found the buying and mortgage processes difficult to understand. When I sold and bought another property in Florida in 2007, the position hadn’t changed, so I made a decision to try and help International Clients understand these processes better. I became a qualified and regulated Loan Originator (Broker) in the State of Florida in 2007 and have been helping US and International clients with the buying and mortgage process since then. On a personal level, I am a family man, married to Gaynor since 1993. We have three great boys, Roman (born 2000), Judd (born 2003) and Finn (born 2006). We all enjoy a wide range of sports although having played rugby for 35 years, rugby is my passion. Graham Aistrop Graham Aistrop was a lawyer in South Yorkshire, England for 20 years before moving to Florida to live and work and change career to become involved in international financing. He became a joint owner in a small wholesale mortgage company in Kissimmee specializing exclusively in foreign national mortgages, and his company was responsible for financing loan applications received from mortgage brokers from around much of Florida. Through in-house underwriting, the company was able to offer a quick and efficient service for the real estate community. He was also responsible for preparing closing packages for the closing agents, and negotiating and selling the company’s closed loans in the secondary market on Wall Street. Graham Aistrop has given seminars and workshops relating to international financing for Realtors and international trade shows throughout central Florida over the last 10 years and has closed loans for citizens from every continent in the world. Financing a vacation property through a U S mortgage is a serious consideration for overseas buyers and the conveyancing system is far different to many other countries. There are considerations of asset protection, tax benefits and building U S credit through having a U S mortgage. Anyone thinking of buying a property in Florida and is unsure of the implications of having a U S mortgage should feel free to contact Graham, without obligation, for free advice on the US mortgage process (001) 407 486 1636 or When not at the closing table, Graham can be found on the many golf courses of Central Florida and is the proud father of 2 beautiful daughters, once of whom is a Realtor in the Kissimmee area and the other is in the student marketing department of Sony Music in Maddison Ave., Manhattan, New York. Ben Attwood Ben graduated from Keele University in the UK in 1999 with an LLB in Law and International History. After attending Chester College of Law, he practiced as a solicitor in the UK for 12 years specializing in Family Law and Property Law. He frequently gave seminars and had articles published on his specialist area matrimonial finances. In 2012, he moved to Florida in order to enjoy the glorious Florida weather and to offer his family a better quality of life. Ben has ably transferred his ability to analyze complex business and personal financial information to the world of international mortgages. Ben is extremely professional, organized and efficient. His clients comment on his exceptionally easy going nature and how much he is able to put them at ease and explain complex matters to them. Having had first hand experience of moving to Florida, buying a business, a house and obtaining his own mortgage, Ben is well placed to assist you make sense of what can be, otherwise, a very daunting exercise. Away from the office, Ben is extremely sporty. He plays any sport with a ball and is keen to explore many of the wide ranging sports that Florida has to offer. His golf handicap has improved since moving to Florida! Call Ben @ 407-516-5229 or Jim Mergenthaler Born and raised in a rural farm town in upstate New York Jim moved to Florida in 1999. While attending college in Orlando, Jim worked in the entertainment industry on everything from Universal’s Spiderman to a knight on horseback at Kissimmee’s Medieval Times. He started his career in the financial industry in mortgage origination and processing with JPMorgan Chase. Two years later he was hired as loan manager for a large local real estate firm in the Four Corners area and quickly found the skills and desire to excel in international finance. In early 2004 Jim branched out to create his own mortgage brokerage business catering specifically to international investors and niche loan products. Over a decade later, Jim has now joined the amazing team at International Mortgage Associates to continue to build on his experience and help people from all over the world live the American dream.

Homeownership is still possible with poor credit. Bad credit does not automatically preclude you from obtaining a home loan. Also, bad credit does not automatically require you to pay a significant down payment up front in order to buy a home. Although credit availability and underwriting standards for most lenders are strict, there are options available to those who experienced financial hardship and had no choice but to face a foreclosure or a bankruptcy in the recent past. The federal government has created mortgage programs to help stabilize the housing market and help downtrodden homeowners get back on their feet. Collect all documentation regarding your income and financial status. Your goal is to convince lenders that despite your poor credit history, you are now financially prepared to handle a mortgage. Prepare your most recent tax returns, pay stubs, bank statements and W-2s. Provide evidence of a stable and reliable employment record as well as a financial worksheet summarizing your monthly expenses. If you have any assets of value such as stock and bond investments, make sure to include those in your portfolio. Lenders will also want to know of any existing liabilities you may have, such as student loans and car payments. Doing your own background check by collecting your financial information will also help you analyze whether you have the capacity to afford a new mortgage. Find a cosigner. Getting a cosigner will help improve your chances of approval for a home loan. A cosigner may also help you negotiate better loan terms, such as a lower interest rate. However, because a cosigner is essentially a co-borrower on the loan, the mortgage will appear on both of your credit reports. In the event that you default on the loan, the cosigner will be held liable for the outstanding balance. Apply for an FHA loan. An FHA loan is a mortgage insured by the federal government and administered by participating lenders. Because the underwriting standards for an FHA loan do not follow the stricter guidelines of Fannie Mae and Freddie Mac, used by conventional mortgage lenders, borrowers with a bankruptcy or foreclosure record are eligible to apply. Additionally, FHA loans require a smaller down payment compared with a conventional home loan-3.5 percent versus 20 percent. Monies used for the FHA loan down payment may be borrowed or gifted funds from relatives, charities or non-profit organizations.

We learned nothing from the last financial crisis. The housing market is set to collapse, again, and a key culprit, again, is artificial demand created by government policies. For starters, mortgage-software firm Ellie Mae reports that the average FICO credit score of an approved home loan plunged to 719 in January (the latest month for which data is available) from 731 a year earlier, and well below 2011’s peak of 750. It’s a dangerous sign lenders are loosening underwriting standards. Lower FICO scores correlate with higher risk of loan default. The Federal Housing Administration is a big reason for falling credit scores. So are Fannie Mae and Freddie Mac. The government housing agencies have slashed credit requirements under pressure from the Obama administration — like the Clinton administration before it — to qualify more immigrants and minorities with low incomes and “less-than-perfect credit.” Meanwhile, home lenders are approving more debt-strapped borrowers. According to Ellie Mae, applicants approved for mortgages in January had an average household debt-to-income ratio of 39%, up from 2012’s annual average of 34%. Borrower debt loads have been creeping higher each year since 2012, when Ellie Mae first started tracking such data. Flip and flop A recent report by the Office of the Comptroller of the Currency, a federal agency that regulates the nation’s banks, warns that declines in mortgage underwriting standards are mirroring pre-crisis trends. “Underwriting standards eased at a significant number of banks for the three-year period from 2013 through 2015, ” the report said. “This trend reflects broad trends similar to those experienced from 2005 through 2007, before the most recent financial crisis.” Not since 2006, it noted, have lenders taken on so much credit risk, and it says the hazard will continue to grow this year: “Examiners expect the level of credit risk to increase over the next 12 months.” A large chunk of the risk is coming from first-time home buyers with shaky credit and so-called “rebound” buyers who previously defaulted on home loans. In the interest of ‘fairness, ’ Obama is lowering credit standards for mortgages — recreating the conditions that brought down the economy in 2008. The American Enterprise Institute reports that its National Mortgage Risk Index for first-time buyers jumped almost a full percentage point in January from a year earlier, driven by “loose credit standards.” The demand from otherwise ­uncreditworthy home buyers “is driving home prices up faster than incomes and inflation, ” noted ­Edward Pinto, co-director of AEI’s International Center on Housing Risk in Washington. This is especially true in hot spots like California, where subprime-mortgage lenders offering interest-only loans with no FICO-score requirements are cropping up from the ashes of Countrywide Financial, the bankrupt Calabasas, Calif.-based subprime giant. In another sign housing is overheating, home “flipping” is red hot again and hitting levels not seen since just prior to the mortgage meltdown. Nationwide, almost 180, 000 homes were sold and then resold last year — the highest level since 2007. In fact, according to RealtyTrac, flipping in a dozen metro areas — including New York, Los Angeles, San Diego, Miami and Jacksonville, Fla. — exceeded peaks set in 2005, when investors took advantage of low interest rates and easy credit. Analysts warn sales from home flipping artificially inflate home prices, increasing the risk of a housing bubble. “When home-flipping numbers go up, it is usually an indication that the housing market is in trouble, ” said Matthew Gardner, chief economist at Windermere Real Estate in Seattle. What goes up… The last housing bubble began inflating in 1997 and lasted 10 years before finally bursting in 2007, in a monumental collapse that crashed markets the world over. Analysts say the current real-estate bubble started in late 2011, when housing values bottomed. Since then, real median home prices have rebounded to a level that is only about 8% below their pre-crisis peak, which was an all-time record. Like the last bubble, this one is fueled by artificial demand from government-induced lax lending standards and accommodative interest rates set by the Federal Reserve. “The result has been a rapid increase in real, inflation-adjusted home prices, with prices up nationally about 16.5% since the home-price trough in 2012, ” Pinto said. He notes that once prices hit 20% or higher, historically, a painful drop in prices follows. “Home prices are subject to the law of gravity, ” he said. “What goes up must come down.” Pinto noted that prices for entry-level homes have climbed by an even higher 19%, making it harder for low-income borrowers to buy without taking out a high-risk loan they ­really can’t afford. When home-flipping numbers go up, it is usually an indication that the housing market is in trouble. - Chief economist at Windermere Real Estate Yet these kinds of borrowers are qualifying for such home loans thanks to the liberalization of credit terms. New federal rules regulating mortgages under President Obama’s “financial reforms, ” despite claims of toughness, are not limiting the volume of high debt-to-income loans. While the rules do recommend a DTI ceiling, they never set minimum down-payment or credit-score requirements. Today’s relaxation in mortgage-underwriting standards is largely a function of government housing-policy changes at FHA, Fannie Mae and Freddie Mac, which dominate the nation’s mortgage activity. As in the last easy-credit cycle, we are seeing “the promotion of policy to push firms to seek riskier products to promote growth, ” Wells Fargo Chief Economist John Silvia said. All three agencies have slashed down-payment and other requirements under pressure from Obama regulators, who include, most significantly, former Congressional Black Caucus leader and Obama appointee Mel Watt, head of the new Federal Housing Finance Agency, which now controls Fannie Mae and Freddie Mac. Not ‘homeready’ Last year, Fannie Mae launched a new subprime-mortgage product called HomeReady that caters to recent immigrants with weak credit and limited income. The new loan program, which offers “income flexibility, ” allows borrowers for the first time to bundle income from roommates and relatives to meet qualifications for income. They only have to put 3% down, and can use gifts from nonprofit groups to subsidize their down payments. “There is no limit on the number of non-borrower household members who can be present on a single transaction, ” Fannie advises originators. And even then there is “documentation flexibility, ” a frightening echo of last decade’s “no-doc loans.” At least before the crisis, your income had to be your own. But now, as a renter, you can get a conventional home loan backed by Fannie by claiming other people’s income. All you have to do in exchange is take a four-hour online course on the responsibilities of homeownership.

Types of Home Loans At iServe, we appreciate that every client has unique financing needs. Our wide portfolio of loan solutions has been developed to meet your requirements and our trusted staff is available to make the selection process as efficient as possible. We understand that with options can come confusion, so our goal is to provide maximum clarity and benefit, regardless of mortgage type. Here is an overview of our loan options: Conforming • Loan amounts up to $417, 000 on single family home (higher limits for multi units). • Fixed and ARM programs. • Available to 97% loan-to-value, over 80% loan-to-value borrower is required to pay monthly mortgage insurance premiums. • 5-20% down payment options. • Primary, vacation, rental, and investment occupancies allowed, as well as 2nd homes. FHA • Loan amounts to FHA high-balance limits per state • Fixed and ARM programs. • Minimum 3.5% down payment. Great for first-time buyers. • Gift funds may be used toward down payment and closing costs. • No early pre-payment penalties • Credit scores to 600 (*580 or lower in some cases), flexible debt ratios. VA • Eligible to veterans for Veterans Home Loan Benefits • Maximum loan limit varies by state • Fixed and ARM programs, rate & term, cash-out. • Zero down payment required for eligible veterans. • IRRRL-max cash out to borrowers is $500 • Single-family, PUD attached/detached • 2-4 units (not allowed on 2nd home or investment VA IRRLs) • Condominiums approved by VA • No Private Mortgage Insurance USDA • Available in designated rural areas. Inquire with us for specifics. • Offers 100% financing, some cases will cover closing costs • Monthly housing cost must meet specified percentage of homebuyers gross monthly income • Applicants may have income of up to 115% of median income in your area. Contact us for specifics 203 (k) • FHA loan program • One mortgage for the rehabilitation and repair of the property. • Important tool for community revitalization and expanding home ownership JUMBO • Fixed and ARM programs. Fixed options include 30 and 15 year. Fixed ARM options include 5, 7 and 10 year. • Purchase, Limited Cash Out Refinance and Technical Finance. • Loans to $1, 500, 000 • Max debt-to-income ratio of 43%

Even though the Federal Reserve raised interest rates last December, mortgage rates remain low by historical standards. That’s good news if you plan to buy a home or refinance anytime soon. And because interest rates on mortgages are so favorable, most homebuyers naturally consider a traditional 30-year home loan. As attractive as that fixed-rate mortgage may be, you can likely get an even lower interest rate — and for a loan that may be even more suitable to your needs. A matter of interest A fixed-rate loan has an interest rate that never changes. An adjustable-rate mortgage, however, resets its interest rate at specific intervals and can be a powerful tool for homebuyers with specific goals in mind. ARMs begin with a set interest rate for a specified period of time, then periodically adjust the rate after that. A “5/1” ARM means your rate will be fixed for five years, and then adjusted annually. Some lenders are extending the length of the initial rate lock from the common five years to seven, 10 or even 15 years, making ARMs even more attractive than other types of mortgage loans. After the initial period, the interest rate is based on an index plus a margin. The index may be a published interest rate such as LIBOR (the London Inter-Bank Offer Rate) or a private interest rate developed by the lender. The margin will be a set percentage that is added to the index. NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Get advice from a mortgage expert Understand what you can afford Find the best loan for you Get approved and funded in 15 days Mortgages meant for different buyers If you’re settled into your career, have a growing family and are ready to set down some roots in a community you love, a 30- or 15-year fixed-rate mortgage may be right for you. With a locked-in rate, you’ll always know what your payment will be. An ARM begins with a lower interest rate, which means your monthly payment will be more affordable, at least for as long as the rate is fixed. Because of this feature, you might actually qualify for a larger loan, and that can mean a nicer house. Or, to view it another way: Say you want to buy a $300, 000 home. It will probably be easier to qualify for the ARM than a fixed-rate mortgage, because the payment is initially lower and absorbs less of your total income. Adjustable-rate mortgages most often appeal to a younger, more mobile first-time homebuyer. If you’re advancing in a career that could require you to move to another city within a few years, are thinking about starting a family soon, or want to simply keep your long-term options open, an ARM could be a good choice. If you move away or trade up to a bigger home before the introductory period ends, you’ve benefitted from that lower rate without the hassle of dealing with an adjustable rate or refinancing to a fixed-rate mortgage. More payment promotions In order to entice more business, some mortgage companies allow borrowers to make interest-only payments, sometimes for periods up to 10 years. In that arrangement, your monthly payment only pays interest on the loan, and doesn’t make a dent in the principle. That can allow even lower payments to start, but be very careful when considering this kind of loan. You’re setting yourself up for a sizable jump in monthly payments later when the interest-only term ends. If interest rates rise during the promotional period, it can make the future payment pain even worse. Caps play a role ARMs can feature one or more built-in caps. These may be limits on how much the interest rate can jump for the first adjustment and for each subsequent adjustment. The caps also can limit the maximum interest rate increase for the term of the loan. Some ARMs offer a payment cap, too — a limit to how much your payment can increase. But while such a cap may limit the amount your monthly payment goes up, it might not limit the interest rate. The result can be a payment that doesn’t cover all of the interest due on the mortgage. The remainder is added to your total debt, so you might be paying interest on top of interest — and actually owing more at the end of your loan term than you did at the beginning. Learn the lingo ARMs involve some complicated terms and conditions, so it’s important to understand all of the lingo. Here are some common terms you should learn: Adjustment frequency: How often your interest rate can adjust. Annually is a common frequency. Adjustment indexes: The amount of expected interest rate change. Discounted initial rate: Often referred to as the teaser rate, this is the fixed interest rate during the initial or introductory period. Balloon payment: A large payment that can be charged at the end of a mortgage. Interest-rate cap: A limit on how much your rate can rise with each adjustment. Payment cap: A limit on how much your mortgage payment can change; usually a percentage of the loan. Interest-only ARMs: With an interest-only adjustable rate mortgage, you’ll pay only the interest — nothing toward principal — for a certain number of years. That means a smaller monthly payment during that time. Be careful, though; this type of loan can land you with a much higher payment after the interest-only period. Payment-option ARM: This mortgage allows you to choose from several monthly payment options: an interest-only payment, a minimum payment or a fully amortizing payment. Again, be very cautious about signing up for this kind of loan.

Stanley Fischer took office as a member of the Board of Governors of the Federal Reserve System on May 28, 2014, to fill an unexpired term ending January 31, 2020. He was sworn in as Vice Chairman of the Board of Governors on June 16, 2014. His term as Vice Chairman expires on June 12, 2018. Prior to his appointment to the Board, Dr. Fischer was governor of the Bank of Israel from 2005 through 2013. From February 2002 to April 2005, Dr. Fischer was vice chairman of Citigroup. Dr. Fischer served as the first deputy managing director of the International Monetary Fund from September 1994 through August 2001. From January 1988 to August 1990, he was the chief economist of the World Bank. From 1977 to 1999, Dr. Fischer was a professor of economics at the Massachusetts Institute of Technology (MIT). From 1992 to 1995, he was the Elizabeth and James Killian Class of 1926 professor. From 1973 to 1977, Dr. Fischer was an associate professor of economics at MIT. Prior to joining the MIT faculty, Dr. Fischer was an assistant professor of economics and a postdoctoral fellow at the University of Chicago. Dr. Fischer has published many articles on a wide variety of economic issues, and he is the author and editor of several scholarly books. He has been a fellow at the Guggenheim Foundation, the American Academy of Arts and Sciences, and the Econometric Society, as well as a research associate at the National Bureau of Economic Research and an honorary fellow at the London School of Economics. Dr. Fischer was born in Lusaka, Zambia, in October 1943. He received his B.Sc. and M.Sc. in economics from the London School of Economics. He received his Ph.D. in economics from the Massachusetts Institute of Technology in 1969.