Types of Mortgage Loans

If you are interested in buying a house, refinance your home or obtaining a Home Equity Line of credit, in Suffolk County, NY New York, Worldwide Capital Mortgage Corp is the best choice that you have.  We, as a broker, have a large diversity of loan programs that include low rates, low closing costs, no upfront fees and much more!

Major types of Worldwide Capital Mortgage Corp loans include:

Fixed-rate loans. Because they offer a monthly payment that is known and does not change, fixed-rate mortgage loans remain the most popular type. Most fixed-rate mortgages are for loan terms of 15 or 30-years. A 30-year loan has lower payments but a slightly higher interest rate.

To pay off a fixed-rate loan sooner, check with your lender to make sure you can make prepayments. You should be allowed to make these anytime and for any amount, with no penalty.

 Adjustable-rate loans. After an initial term, the interest rate on an adjustable-rate mortgage ARM loan is re-set periodically. This is to keep the rate in line with current market interest rates. For example, a 3/1 ARM loan offers a fixed rate for the first three years, adjusting once a year thereafter. A 5/1 ARM loan offers a fixed rate for the first five years, adjusting yearly thereafter. The lender sets the interest rate by adding a margin to an index rate.

Most ARM loans have a periodic rate cap and lifetime cap to limit the amount the interest rate can increase each adjustment period and over the term of the loan, respectively. If you have a payment cap in your loan agreement, you may face negative amortization of your loan. This has the effect of increasing the amount you owe.

Balloon mortgage loans. These loans often have interest-only payments. In this case, you don't amortize any loan principal and the entire loan amount is due at the end of the loan term. A balloon mortgage allows you to minimize your monthly payments until you refinance the loan. Another advantage is that a larger share of your payment may be eligible for the mortgage interest tax deduction.

 If you need more information about any of our loan programs, please go to our website at www.worldwidecapitalmortgage.com.