CTX Mortgage
CTX offers a complete line of sought-after loan programs,
they pride themselves on finding the right one to meet your specific needs. Here
are just a few of the loan programs available. Talk to one of their loan
professionals today for the best programs, rates and services.
Conventional Loans: A conventional loan is a mortgage loan, which is not insured
or guaranteed by any agency of the state or federal government. Many years ago,
the only loans available for housing were conventional loans with very short
terms of 3-5 years with balloon payments and high down payment requirements of
as much as 50% down.
FHA loans: FHA Loans have a lower down payment requirement than conventional
loans, but higher than VA loans. FHA has a more liberal qualifying formula than
on conventional loans but not as liberal as VA loans. FHA loans made before
December 15, 1989 are fully assumable and can be creatively financed. Loans made
after December 15, 1989 can be assumed at the same interest rate with
qualification. FHA is more lenient on properties that are older or are located
in undesirable neighborhoods. Disadvantages - $155,250 county loan limits may be
inadequate in high cost areas. Appraisals may contain more repair requirements
than conventional loans.
5/1 ARM: The 5/1 ARM mortgage is a 5-year level payment program that guarantees
the payments for the first 5 years and then it becomes a 1-year ARM for the
remaining 25 years. The interest rate upon renewal is determined by an index out
of the lender's control and may not be increased by more than 5% in interest.
The prime advantage to the borrower is that the lender can offer a fixed rate
level mortgage payment at interest rates .25% - .50% below 30 year fixed rate
mortgages. This is because the lender is only locking in the interest rate for 5
years, rather than 30 years under the traditional 30-year fixed rate mortgage.
The one disadvantage is the borrower may have to pay substantially higher
interest rates and payments after the first 5 years, if interest rates go up
over the first 5 years.
7 Year Balloon: The 7/23 mortgage is a 7-year level payment ARM that guarantees
the payments for the first 7 years and then it becomes a fixed rate mortgage for
the remaining 23 years. The interest rate upon renewal is determined by an index
out of the lender's control and may not be increased by more than 6% payment at
interest rates .25% - .50% below 30-year fixed rate mortgages. This is because
the lender is only locking in the interest rates for 7 years, rather than 30
years under the traditional 30-year fixed rate mortgage. The one disadvantage is
the borrower may have to pay substantially higher interest rates and payments
after the first 7 years, if the interest rates go up over the first 7 years.
VA Loans: The loan program for owner-occupied housing is one of the best loan
programs in the free world. It is possible for a veteran to obtain 100% loans up
to $203,000 with absolutely no down payment and the seller or builder is allowed
to pay all of the veteran closing costs, making the total cash required to
purchase, in some instances, zero. If the veteran desires higher priced homes,
he generally is required to make a down payment on the amount over $203,000.
Generally, the Veterans Administration is a little more liberal than
conventional lenders would be with regard to the veteran's credit standing and
qualifying for the VA loan, although recent VA underwriting changes make the
qualifying criteria similar to conventional mortgages.
Jumbo Loans: Loans in excess of FNMA/FHLMC limits are called Jumbo loans and
often carry higher interest rates and points. Larger down payments may also be
required on these loans.
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