Our Loan Programs
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Fixed Rate Mortgages
Find financial stability with a fixed rate mortgage
A fixed rate mortgage is the most popular loan program chosen by homeowners. If you are one of the many homeowners who desire a stable monthly interest rate and payment over the life of your loan, then a fixed rate could be the loan for you.
With a fixed rate loan, it doesn’t matter what is happening in the market. If interest rates begin fluctuating wildly, your rates will remain steady and sure. Nobody knows what the future holds, but with a fixed rate mortgage you can have the peace of mind that nothing will cause your rates and payments to rise.
Your financial planning is made easier when you know what your mortgage payments will look like for the next 15 or 30 years. Set and reach short and long-term financial goals by knowing your interest rates will never go up, and neither will your payments. With a fixed rate mortgage, your principal and interest payment is set in stone. While your property taxes and homeowner’s insurance may change throughout the years, your principal and interest payments will be reliable and consistent.
Choose a fixed rate term that works for your financial goals. You have the freedom to select various fixed rate loan options. If you choose, you can make higher monthly payments and reduce the amount of time it will take to pay down your principal or pay off your mortgage before the end of your fixed term.
30 Year Fixed1
- The most popular mortgage loan program
- A stable interest rate and reliable monthly payments over the life of your loan
- Build equity over time and pay principal balance down faster whenever you choose
A 30-year fixed is a great option when you want peace of mind of stable monthly payments to reach your long-term financial goals.
15 Year Fixed2
- Interest rates are typically lower than 30-year fixed
- A fixed rate loan that allows you to pay principal down faster than 30-year fixed
- Pay higher monthly payments in order to pay less in total interest over life of loan
A 15-year fixed is a terrific option when you prefer a higher monthly payment in exchange for paying less in interest, want to pay your house off sooner or when you have short-term plans for your home.
Adjustable Rate Mortgages
A dynamic loan option to power your goals
An Adjustable Rate Mortgage, or ARM, can be a powerful tool for homeowners. An ARM is a mortgage that offers a low introductory fixed rate term. After this period is over, the adjustable period follows for the remainder of the term. During this adjustment period the interest rates can adjust up or down depending on the financial index it is attached to.
Low introductory rates
During the initial fixed period, the interest rates on an ARM are generally lower than with a fixed rate loan. This means lower monthly payments for the introductory term. If you plan on selling or refinancing your home in 5-7 years, an ARM is a great option for lowering your rate and payments during that introductory fixed period.
- Lower interest rates and payments early in the life of the loan
- Mortgage payments and interest rates remain fixed for introductory period
- Caps on interest limit the amount a rate can rise annually and over the life of the loan
Big benefits for short term goals
Lenders are able to offer lower interest rates on an ARM because they only have to guarantee that rate for the introductory fixed period. Luckily, the average American refinances or moves every 5-7 years which just happens to be the same fixed period on an ARM.
For that period of time, you can benefit from lower interest rates and monthly payments compared to a fixed rate mortgage.
What happens if you don’t refinance or move in the next 5- 7 years, and you reach the end of your ARM fixed term? When an ARM adjusts, the interest rates may be higher or lower than they are when you first got the loan. There is a risk of your interest rate and payments adjusting up. If your ARM does adjust up, a cap will limit the amount that the loan can go up annually and over its lifetime. You will be able to anticipate a worst-case scenario and know exactly how far up your interest rate can change that year and beyond.
The bottom line is that an ARM can be a powerful tool to get you a lower interest rate and monthly payments for a set period of time. This option is not right for everyone, but if you plan on moving or refinancing in the next 5 – 7 years, an ARM could be a benefit for you.
At Element Mortgage, our loan advisors can help you to determine if an ARM fits your financial goals.
FHA Home Loans
A loan designed to get you into a home
FHA loans are insured by the Federal Housing Administration, and with the government guarantee, lenders are more willing to lend with more lenient qualifying guidelines. FHA loans have been specifically designed to help borrowers get into homes.
Ideal for First-Time Buyers
First-Time Buyers can often benefit from the more flexible guidelines of an FHA loan, including a lower down payment. Typical conventional down payments can range between 10% – 20%, but with an FHA loan, the down payment can be as low as 3.5%3. This lower down payment can even be provided to you from a family member as a gift fund.
With more lenient qualifying guidelines, FHA loans make homeownership more accessible to more people. Credit scores to 600, lower debt ratios and seller contributions are all allowed with an FHA loan. A few ups and downs in your credit history may be OK with FHA guidelines.
- Ideal for First-Time Buyers
- Lower down payments and gift funds allowed
- More flexible qualifying guidelines
- Available for purchase or refinance, fixed or adjustable rate
Not just for First-Time Buyers
First-Time Buyers are not the only ones who can benefit from a government guaranteed loan. You can refinance with an FHA loan even if you don’t currently have an FHA loan. FHA loans come with a few requirements. Because the program intends to help buyers get into a home, you must live in it as your primary residence. (Don’t worry investors, we have plenty of other loan programs that may work for you.) Flip properties are allowed as long as they are owner occupied.
Some FHA programs will require you to have the home appraised by an FHA- approved appraiser and for you to pay mortgage insurance premiums. Plan on paying Upfront Mortgage Insurance (UFMI) and a Monthly Mortgage Insurance Premium. Our Element Mortgage loan advisors can tell you what you qualify for and what to expect for your total payments, including mortgage insurance.
VA Home Loans
A superior program to recognize our heroes
A VA loan is insured by the U.S. Department of Veterans Affairs and issued by VA-approved lenders. This government guaranteed loan encourages these approved lenders to lend with more flexible and lenient qualifying guidelines.
VA loans offer unmatched benefits to our heroes the veterans, active duty and surviving spouses.
- 100% financing available*
- No mortgage insurance requirement
- Funding fee may be financed
Qualifying for a VA Loan
Veterans, actively serving military personnel and surviving spouses of veterans qualify for a VA loan with suitable credit, adequate income and a valid Certificate of Eligibility.
Veterans purchasing their first homes can qualify for more home thanks to no requirement for mortgage insurance. The VA does not require a down payment, and homebuyers can even purchase a home that needs repairs or remodeling and include the costs of those repairs into the VA loan, up to 103.15%.
The VA offers a Streamline Refinance to lower the interest rates for many veterans without having to re-qualify. The VA mortgage is an incredible program that honors our heroes. The amazing benefits to buyers or borrowers cannot be matched by any other loan program. Purchase a home with no money down, borrow 100% of the value of the home or more, qualify with lenient guidelines and avoid mortgage insurance requirements with a VA loan.
Not sure if you qualify? Want to compare a VA loan to other programs to be sure you are getting the loan that works for you? Our loan advisors at Element Mortgage can go over the VA guidelines so you can rest easy knowing that the VA loan is a superior program established in recognition of you.
* Qualifying factors may apply
2 15 Year Fixed: Loan amount $300,000, 20% down, monthly payment without taxes and insurance $2,256.84, APR 4.495%.
3 FHA: Loan amount $300,000, 3.5% down, monthly payment with mortgage insurance but without taxes and homeowners insurance. $1,712.74, APR 5.395%, FHA monthly MI is $211.00.