Adjustable Rate Mortgage (ARM): The Adjustable Rate Mortgage is a home loan option where the interest rate on the loan changes. The benefits of an ARM is that typically the interest rate will be lower than a fixed rate loan, in addition after the fixed rate period of the loan ends your interest rate may decrease which will reduce your monthly payment. Adversely after the fixed rate period ends your interest rate may rise which will increase your monthly payment, another downside to an ARM is that because of the flux in interest rates your payment may change as well, making it difficult to predict what your payment will be in the future.
Adjustable Rate Mortgage’s typically work well for individuals who want:
- The lowest available mortgage rate
- May be eligible or looking to refinance in the future
- To reduce the overall cost of their mortgage
FHA Loan: The FHA Loan is a loan option that is popular with many individuals due to its lower down payment and easier lending restrictions. An FHA Loan is a loan that is insured by the Federal Housing Administration and in return a borrower will pay mortgage insurance to protect the lender in the event that the borrower defaults. FHA Loans often have lower interest rates and easier restrictions because the FHA loan is backed by the Federal Housing Administration and insured.
FHA Loans usually work well for individuals who want:
- A lower down payment
- Easier credit and qualification restrictions
Fixed Rate Mortgage: The Fixed Rate Mortgage is the most typical type of home loan option, with a Fixed Rate Mortgage the interest rate stays the same throughout the life of the loan, because the interest rate remains the same, the principal and interest on the loan will remain the same as well - this is one of the perks of having a Fixed Rate Mortgage. A disadvantage however is that you will usually have a higher interest rate than an Adjustable Rate Mortgage. Typical Fixed Rate Mortgages are the 30 year and the 15 year fixed.
Fixed Rate Mortgages typically work well for individuals who:
- Plan on staying in their home for several years
- Prefer a mortgage payment that is fixed and does not change
Contact one of our experienced Loan Professionals today to find out more about how GEM Mortgage can help choose the perfect home loan option for your financing needs.
Our Loan Programs
Of course, we offer the standard conforming and non-conforming, conventional and government loan programs which are offered throughout the industry. However, we are always working to develop new and innovative financing options to help you help your clients achieve the dream of home ownership!
Our GEM Platinum Program, for example, allows you to combine an FHA 30 year fixed with a 3% grant to help your buyers hold onto their liquid assets as reserves or to add the finishing touches it takes to personalize a new home.
Fixed Rate Mortgages
- 30 Year Fixed
- 20 Year Fixed
- 15 Year Fixed
- 10 Year Fixed
Adjustable Rate Mortgages
- 1 Year Fixed / ARM
- 3 Year Fixed / ARM
- 5 Year Fixed / ARM
- 7 Year Fixed / ARM
- 10 Year Fixed / ARM
Buyer Assistance Programs
- GEM Platinum (99.5 LTV w/ 3% Grant)
- CalHFA, ACCESS, SCHFA, CHDAP
- HomePath, Home Possible, and MyCommunity
- Single Family Residence
- 2-4 Units
- High Rise Condos
- USDA – Up to 20 Acres
* Programs listed are a sampling of GEM loan products.