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At any given time, lenders may offer hundreds
of loans explained with a set of terms you may
find undecipherable. Of course at Mortgage Assistance
you’ll get the guidance you need to keep
from getting trapped in the maze. We’ll discuss
your needs, assess factors such as the size of
the loan, current rates, your cash flow and risk
tolerance, and then present the most appropriate
options. Though your loan may be customized, the
majority of the programs fall into a general set
of programs, which are described for you here.
30-year fixed
As the name suggests, your rate and payment
schedule remains fixed for 30 years. This type
of loan provides for lower monthly payments than
short-term fixed rate options and is likely to
be a good choice if you plan to stay in the property
for many years.
15-year fixed
This program offers a lower rate than its
30-year counterpart, however the monthly payment
will be slightly higher. If your income permits
you to have higher payments, the 15-year term
provides a great strategy for realizing tremendous
savings in interest and providing financial freedom
at a much younger age.
20-year fixed
Typically this “in-between” loan
term offers the same interest rate as a 30-year
fixed. Since you’re paying off the loan in
far fewer years, the payments will be slightly
higher, but over the course of the loan you’re
likely to realize interest savings above and beyond
$100,000.
11th district cost of funds
Extremely attractive payment options make
this type of loan a very popular choice for Californians
contending with the high cost of real estate.
For a period of five years, payments are based
on a rate as low as 2.95%. Talk to your Mortgage
Assistance specialist for more detailed information
on how this loan works.
Monthly treasury average (MTA)
This loan works much like a COFI-based loan,
but is based on the Monthly Treasury Average rather
than the Cost of Funds Index. Mortgage Assistant’s
president liked this program enough to go with
it for his home.
Adjustable rate mortgage (ARM)
These loans have fixed rates for 1, 3, 5,
7, or 10 years. After the fixed rate period, the
interested is adjustable once per year based on
The Constant Maturity Treasury (CMT) or a similar
index. This program allows you to enjoy a discounted
rate as compared to common 30-year fixed rates
and is an excellent option if you plan on only
staying in your home for a relatively short period
of time.
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