Mortgage Programs Information

Mortgage Programs
Mortgage programs at Inter-Lake Mortgage Company, LLC can provide you with hundreds of programs from simple purchase to multi-person/unit transactions, you're sure to find the loan to fit your needs whether it be a Fixed Rate Mortgage, an Adjustable Rate Mortgage, an Interest Only Loan, or a No Income Verification (NIV) loan!

The most common fixed rate mortgages are the 15 and 30 year loans. In these types of loans, the interest rate and monthly payments remain constant over the life of the loan. The payments are calculated so that upon maturity note term is paid in full. During the early amortization period of these fixed rate loans, a large percentage of the monthly payment is used for paying the interest. As the loan is paid down, more of the monthly payment is applied to principal. Some of the advantages of the fixed rate mortgage is that your loan payment remains constant, so you can more easily budget your finances.

An adjustable rate mortgage offers borrowers an interest rate that fluctuates over time. The initial interest rate is in effect for a specific period, usually 2 or 3 years, and then the rate and payment adjust every 6 months. ARM loans start out with a low interest rate. The main purpose for an ARM loan is to have the loan for a short period of time, to consolidate debts that may start to effect your credit, or if you're selling your property within a few years.

Balloon loans are a dying loan program, this is mostly used for commercial businesses. There are so many different programs to choose from, why be forced to refinance or payoff the loan especially if the rates are high at that time.

No Income Verification or Stated Income loans are available to borrowers who are unable to verify their annual income. These borrowers may be self-employed, 1099 employee, and sometimes W2 employees. Lenders who offer these mortgage programs will most likely have slightly higher interest rates than a documented income loan. This is based on risk involved in loaning to borrowers whose incomes have not been verified.

No Income No Asset Verification or NINA loans are the next level of reduced documentation loans. This loan type does not require income or assets to be verified. Interest rate is based on risk, but some lenders do not care to verify if the credit (FICO scores) are high.

No Documentation loans are just that. An application is filled out, credit is run and that's about it. Income, assets and employment are not even stated on the application. The interest rate and Loan to Value (LTV) is determined by the strength of your credit.

Reduced documentation or ALT Doc loans are another way to prove income. Reduce docs is mostly bank statements for the past 6,12 months or 24 months for full documentation. This is when your personal bank deposits are totaled then divided by the number of months you are showing for income. If for a business account, do the same, but you can only use 75% as income.