Glossary

1ST MORTGAGE REFINANCE
A 1st Mortgage Refinance can pay off your existing mortgage with a lower rate and tap into your home's equity for additional funds to pay off credit card debts, personal loans, student loans, cash-out for home improvements, etc. Some of the most flexible refinance programs are:

Traditional Adjustable Rate Mortgage
The traditional adjustable rate mortgage is a program that is typically amortized over 30 years and offers an interest rate that periodically adjusts according to an "index" such as the LIBOR. This program will typically offer the lowest initial interest rate available in the marketplace.

Hybrid Adjustable Rate Mortgage
A hybrid adjustable rate mortgage has an initial fixed rate, usually for a 2 or 3-year period, after which time the loan converts to an adjustable rate mortgage. This is often called a 2/28 or 3/27 loan program. This program is commonly used to offer low payments that are guaranteed for a specific, short, period of time.

Interest Only Adjustable Rate Mortgage
An interest only adjustable rate mortgage features a monthly payment that is applied to the interest portion of the loan, freeing up the amount that would typically go towards paying the principal for other uses. This program will typically offer the lowest monthly payment available in the marketplace. This program is commonly used for borrower's currently in a major cash-crunch or merely looking to free up earned income from their monthly obligations. The interest only portion of the mortgage provides an initial lower monthly payment in exchange for assuming a higher monthly payment in the future when the interest only term expires. You must take this risk of payment differences into consideration when making the decision if an interest only loan is right for you.

Fixed Rate Mortgage
A fixed rate mortgage is a program that is typically amortized over 15 or 30 years and offers a fixed interest rate and payment for the life of the loan. This program offers piece of mind for those who plan on keeping the loan for 10 or more years.

2ND MORTGAGE HOME EQUITY LOAN
A 2nd Mortgage Home Equity Loan is commonly used when homeowners have a low rate on their current 1st mortgage but require additional funds for debt consolidation, home improvement, college tuition, automobile purchase or cash. Some of the most flexible home equity solutions are:

Home Equity Line of Credit (HELOC)
A home equity line of credit is a variable rate loan that is tied to the prime rate as posted in the Wall Street Journal. This program generally offers the lowest interest rate available and allows you the freedom to pay as little as the interest portion of the payment each month. In addition, as you pay down the balance of the HELOC you accumulate available credit that can be used as needed in the future.

Home Equity Installment Loan
A home equity installment loan is a fixed rate loan where the interest rate and payment remain the same for the life of the loan. This program offers a guaranteed payment for as long as you have the loan.