Common Loan Programs

30 Year Fixed Rate Program
30 year fixed mortgage is a type of mortgage loan that is repaid by the borrower making
360 equal monthly payments over a period of 30 years. Since the borrower's payments
are 'fixed', the borrower can expect to make the same monthly payment for the entire
term of the loan. A 30 year mortgage loan is the most widely accepted program used to
finance a residential purchase, and is available for conventional, jumbo, FHA and VA
loans.

15 Year Fixed Rate Program
A 15 year fixed mortgage is a type of mortgage loan that is repaid by the borrower
making 180 equal monthly payments over a period of 15 years. Since the borrower's
payments are 'fixed', the borrower can expect to make the same monthly payment for
the entire term of the loan. A 15 year mortgage loan is the most widely accepted
program used to finance a residential purchase, and is available for conventional,
jumbo, FHA and VA loans.

1, 3,5, 7, 10 Year Adjustable Rate Loan Programs

Jumbo Loan Programs
A jumbo mortgage is a mortgage loan which is larger than the limits set by Fannie Mae
and Freddie Mac ($322,700 as of 1/1/2003). Since these two agencies will not purchase
these types of loans, they usually carry a higher interest rate (to enhance their value
and marketability to investors).

FHA Loan Programs
An FHA mortgage loan is insured by the Federal Housing Administration(a division of the
Department of Housing and Urban Development (HUD)). Although mortgage lenders
provide the mortgage funds, the FHA sets underwriting standards for approving
applicants. In many cases, FHA underwriting guidelines are more lenient than
conventional (not government insured or guaranteed) underwriting guidelines. This
leniency makes it easier for borrowers to qualify for a mortgage loan (low down payment
requirements and a higher monthly debt allowance). FHA limits the types of loan
programs it insures, but it will insure the more popular 30 year fixed, 15 year fixed and
one year adjustable loan programs. However, borrowers are limited to the amount that
they can borrow using an FHA-insured mortgage. Applicable loan limits differ by county,
so contact your local HUD office for specifics.

VA Loan Programs(Dept. of Veterans Affairs)
A VA mortgage loan is a mortgage loan that is guaranteed by the Department of Veterans
Affairs (DVA). One of the biggest advantages of using a VA loan is that the borrower can
finance the purchase of a property with no-money down. However, VA loans are
restricted to individuals qualified by military service. The DVA will guarantee the more
popular 30 year fixed, 15 year fixed loan programs.

5/25, 7/23 Balloon Programs
A balloon mortgage loan is a type of mortgage loan that has a short term (typically 5 or 7
years), but the monthly payment is computed using a 30 year term. When a borrower
uses a balloon loan, he/she will make the monthly payment for the scheduled loan term
(5 or 7 years). When this loan term is over, the borrower is required to pay off the
remaining balance in one lump-sum payment. If the borrower decides not to sell the
property after the loan term is over, the borrower has the option to refinance the
mortgage with a new one. A 7/23 balloon mortgage gives the borrower the option to
convert to a fixed rate program (for a nominal fee) after the initial term (7 years) is over.
If the conversion feature is used, the interest rate for the remaining term of the loan (23
years) will be adjusted once to reflect market conditions, then remain fixed for the
remainder of the loan term.

Many additional Programs Exist Today...Please Call for Details!
Marne & Don Cobb

Comey &
Shepherd Realtors

6901 Wooster Pike
Cincinnati, Ohio
45227

Office: (513)
561-5800
Voice Mail: (513)
527-2357
Mobil: 886-3210
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