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Several adjustable rate mortgages are available to homeowners and they include 6-Month Certificate of Deposit ARM, 1-Year Treasury Spot ARM, 6-Month Treasury Average ARM, and the 12-Month Treasury Average ARM. An ARM that reacts quickly to the market will allow the borrower to benefit from falling interest rates. An ARM that lags the market will allow the borrower to take advantage of lower rates when rates being to increase.

There are several aspects of ARMs that impact interest rates including the index, margin, interim caps, and payment caps. The index of an ARM is the financial instrument that the loan is linked to and indexes move up and down with the market. The margin is added to the index to determine the interest that the borrower will pay. Caps, such as the interim cap, protect borrowers against rising interest rates. Payment caps, on the other hand, place a maximum on the amount a borrower must pay. This type of cap also protects against payment shock associated with rising interest rates.

Index
The index of an ARM is the financial instrument that the loan is "tied" to, or adjusted to. The most common indices, or, indexes are the 1-Year Treasury Security, LIBOR (London Interbank Offered Rate), Prime, 6-Month Certificate of Deposit (CD) and the 11th District Cost of Funds (COFI). Each of these indices move up or down based on conditions of the financial markets.

Margin
The margin is one of the most important aspects of ARMs because it is added to the index to determine the interest rate that you pay. The margin added to the index is known as the fully indexed rate. As an example if the current index value is 5.50% and your loan has a margin of 2.5%, your fully indexed rate is 8.00%. Margins on loans range from 1.75% to 3.5% depending on the index and the amount financed in relation to the property value.

Interim Caps
All adjustable rate loans carry interim caps. Many ARMs have interest rate caps of six-months or a year. There are loans that have interest rate caps of three years. Interest rate caps are beneficial in rising interest rate markets, but can also keep your interest rate higher than the fully indexed rate if rates are falling rapidly.

Payment Caps
Some loans have payment caps instead of interest rate caps. These loans reduce payment shock in a rising interest rate market, but can also lead to deferred interest or "negative amortization". These loans generally cap your annual payment increases to 7.5% of the previous payment.

Lifetime Caps
Almost all ARMs have a maximum interest rate or lifetime interest rate cap. The lifetime cap varies from company to company and loan to loan. Loans with low lifetime caps usually have higher margins, and the reverse is also true. Those loans that carry low margins often have higher lifetime caps.

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Several adjustable rate mortgages, ARMs, are available to homeowners and they include 6-Month Certificate of Deposit ARM, 1-Year Treasury Spot ARM, 6-Month Treasury Average ARM, and the 12-Month Treasury Average ARM. An ARM that reacts quickly to the market will allow the borrower to benefit from falling interest rates. An ARM that lags behind the market will allow the borrower to take advantage of lower rates when rates being to increase. As a borrower it is important to watch the market and speak with your mortgage broker to decide which type of ARM will best fit your home loan needs.

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Balloon mortgages are home loans that typically last for shorter periods of time, most are between 3 and 10 years, and these types of loans allow the borrower to pay lower monthly payments and interest rates. Often when the loan period has ended the home owner is required to pay the remaining balance in full. When certain criteria are met lenders may convert the home loan to a fixed or adjustable rate mortgage.

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Why a Construction Loan?
Borrowers will need a construction loan if they intend to purchase a home in a new development or if they are building a custom home. Construction loans are necessary because of the longer time frame and special requirements of the building process.

One Time Close Construction Loans
Many mortgage lenders offer borrowers One Time Close construction loans. This type of construction loan will finance the construction of a primary or secondary residence and the permanent loan when construction is finished. A One Time Close construction loan requires borrowers to sign only one set of documents and allows borrowers to lock in a rate for the permanent loan at this time. This type of home loan will allow for 12 months of construction time and during the construction period, interest is charged only on the funds that have been disbursed.

Qualifications and Requirements
There a few documents and qualifications that borrowers will need to have when they begin the application process for a construction loan. Some of the qualifications mortgage lenders will require are a minimum credit score of 620 and sufficient liquid assets. The documents construction lenders will ask for include a building department permit and many require that construction be completed within 12 months.

Atlanta Construction Loans Apply Online
An Atlanta construction loan can help you build the home of your dreams in Atlanta. Our Atlanta construction loan experts can help you choose the Atlanta construction loan that is right for you. Contact Southern Investment Mortgage Corp to discuss your Atlanta construction loan.

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Lowering Your Monthly Payments
Debts that go unpaid can damage your credit and make it difficult to obtain a home loan. In some cases it is recommended that before obtaining a home loan the borrower consolidate or pay of his debt. Debt consolidation will lower your monthly payments while simultaneously increasing your credit rating. Paying off debt, without the assistance of consolidation, prior to applying for a home loan is another good way to improve your chances of being approved for a home loan. Refinancing your first mortgage or obtaining a new home equity loan may also be a financially practical way to relieve the burden of high monthly payments.

Tax Savings
Often times the interest portion of a debt consolidation loan or second mortgage may be tax deductible. The total deductions depend on your individual tax bracket and state tax laws. Check with your tax advisor for more details. The tax savings can be substantial when compared to your non-deductible monthly bills.

Simple Interest Savings
The differences in the type of interest you pay on your home loan will impact the price of your monthly payments. With simple interest, interest is calculated once and is fixed. This can create savings for the home owner because with compound interest, the interest amount is added to the principle continually and then begins to incur additional interest charges. Credit cards work by charging compound interest and this is why the balances can easily get out of control and be difficult to pay off.

Debt Consolidation Loan Terms
Many mortgage lenders give borrowers the option of using all or part of your new home loan for debt consolidation. If you prefer, you can choose to use some of the money to build an addition onto your home or make other home improvements. This money can also be received as cash for personal use. Most programs that are offered have terms anywhere from 5 to 30 years. The minimum loan amount that is offered in most circumstances is $15,000.

No Equity Home Loans
When considering a debt consolidation loan or a second mortgage, homeowners should know that in many cases no equity is required. Many mortgage lenders offer no equity home loans to help you, the homeowner, consolidate your bills and lower your monthly payments. The funds generated through this type of no equity mortgage can be used for any purpose. These loans are available to qualified borrowers at up to 125% of a home's current price.

Atlanta Debt Consolidation Loans
An Atlanta debt consolidation loan from Southern Investment Mortgage Corp can help to reduce your monthly payments. Our Atlanta mortgage brokers can help you with your Atlanta debt consolidation loan needs. Contact Southern Investment Mortgage Corp today to get started on your Atlanta debt consolidation home loan.

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An FHA Loan is a Government backed loan which allows for a owner occupied buyer to have less desirable credit, income, savings than traditional financing.  An FHA loan only requires 3% from the buyer towards the home purchase not including closing costs of which 6% can be paid by the seller of the property. FHA allows the down payment to be gifted from a close relative or employer. FHA will allow a buyer to have minimal credit history, provided 3 sources of credit can be produced i.e. 12 month payment history on utilities, telephone, cable, auto insurance etc.  In addition, a favorable twelve-month Rental History must be established.

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One of the many types of home loans offered to borrowers is called a fixed rate mortgage. Unlike an adjustable rate mortgage, the monthly payments for a fixed rate mortgage stay stable through-out the life of the loan. This type of home loan is most commonly available in 15 and 30 year mortgages and can provide the stability many home buyers require during unstable economic times.

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Full Document Loan
A full doc loan is one that requires that the borrower present all necessary documents, including income verification to be considered for the home loan. This type of loan usually offers lower rates because it is less risky for the lender. On the other hand, if you are self employed you may not have all of the required documents and should look into a stated income loan.

Stated Income
Stated income home loans allow those who are self employed or do not have documentation of earned wages to state a wage on the mortgage application and qualify for a mortgage based on that stated income. The advantages of a stated income home loan allow those who are self employed or do not have documentation of earned wages to state a wage and qualify for a mortgage based on that stated income. The disadvantages of this type of loan are that interest rates and the required down payments are often higher than with traditional home loans.

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Refinancing with No Closing Costs means NO POINTS, NO FEES. Referred to also as No Points, No Fees Refinance or Zero Closing Cost Mortgage.

Borrowers should be aware that No Closing Cost loans may not be available on smaller loan amounts.

Closing Costs items are called Non-Recurring Closing Costs versus Recurring Closing Costs (which will continue every month as is done with taxes, interest, and hazard insurance). The Non-Recurring Closing Cost will be credited back to you from the previous lender under Broker's contribution. Therefore, it is always good to remember that your old lender will reimburse you for taxes, insurance (hold in escrow).

Closing Costs include:

• title and escrow fees
• appraisal
• lender's fees
• credit report fees
• recording fees
• origination fees
• all other expenses which are part of the closing and will not be in your monthly payment

Recurring Costs like insurance, interest, and property taxes, will continue to be expenses every month. RECURRING COSTS ARE NOT COVERED EXPENSES IN A NO CLOSING COST LOAN; YOU MUST PAY THEM.

The idea of No Closing Costs is that the borrower does not pay the Non Recurring Costs or Points. With Southern Investment Mortgage, the borrower does not pay an application fee and there is no rate log fee. The only difference between Closing Cost and No Closing Cost is a higher rate [mostly 0.25%] for the lender to generate a rebate to pay the Closing Cost.

Advantages of Closing Cost Loans

• monthly payments will decrease instantly with no upfront investments to refinance
• when interest rates decline again, the borrower may simply refinance again
• it takes years to Break Even when you pay Closing Costs
• it is good for borrowers staying home just for a few years; so even if rates do not drop again you will have net savings without the Closing Cost
• good for first time home buyers who are short of cash
• upgrading (more ups) with little equity in current house
• money saved from not having a Closing Cost could be used for other purposes

Our loan consultants will help you in your decision; the key is to run the actual figures and analyze the specific situation and the needs of the borrower. Contact Us or phone 1-800-655-5095 or 404-781-4000.

Home Equity Line of Credit

Closing Cost: Zero
Rate: Prime + Zero

Home Equity Line of Credit is also available with No Closing Cost and could be as low as Prime + Zero. Home Equity Line of Credit is an adjustable rate loan, has a check writing capability and allows the borrower to draw funds as needed and pay only for what is drawn.

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A reverse mortgage is a unique type of loan used by older Americans to convert the equity in their homes into cash. The money from a reverse mortgage can provide seniors with the financial security they need to fully enjoy their retirement years. The reverse mortgage has earned its name because the payment stream is "reversed." Instead of making monthly payments to a lender, as with a regular first mortgage or home equity loan, a lender makes payments to you. The money from a reverse mortgage can be used for anything from daily living expenses to home repairs and home modifications.

Reverse Mortgage Qualifications

To qualify for a reverse mortgage you must be at least 62 and own your own home. There are no income or medical requirements to qualify. You may be eligible for a reverse mortgage even if you still owe money on a first or second mortgage. In fact, many seniors get a reverse mortgage to pay off a first mortgage.

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All information published here is correct as of January 25, 2003.  Please consult with your local VA office with any questions on eligibility, or visit the VA Home Loan Eligibility site at: 
www.homeloans.va.gov/eligibility.htm

• No Down Requirement for Veterans of the United States Military who are eligible.

• Flexible Credit Criteria on VA Financing.

• Seller can contribute more towards closing costs than traditional financing.

• Faster approvals on VA Loans than ever before!

• Great Rate & Term Refinancing Program for Veteran Borrowers!

Wartime Veterans:

All Wartime/Conflict Veterans who were not dishonorably discharged, and served at least 90 days:

• World War II - September 16, 1940 to July 25, 1947

• Korean Conflict - June 27, 1950 to January 31, 1955

• Vietnam Era - August 5, 1964 to May 7, 1975

• Persian Gulf War - Check with VA regional office for specific eligibility.

• Iraq War - Check with VA regional office for specific eligibility.

Peacetime Veterans:

Service of at least 181 days of continuous active duty with no dishonorable discharge. If you were discharged earlier due to a service-connected disability, you should speak with the regional VA office to verify eligibility.

• July 26, 1947 to June 26,1950

• February 1, 1955 to August 4, 1964, or

• May 8, 1975 to September 7, 1980 (enlisted) or to October 16, 1981 (officer)

Enlisted veterans whose service began after September 7, 1980, or officers whose service began after October 16, 1981, must normally have served at least two years.

Reserves and National Guard:

• Members who have completed six years of service and have been honorably discharged (or are still serving) may be eligible for a VA loan. Contact your regional VA office for more details.

Other types of service that may make you eligible for a VA loan:

• Certain US citizens who served in the armed forces of a government allied with the United States during World War II.
• Surviving spouses of eligible persons who died as the result of service or service-connected injuries. The surviving spouse must not have remarried.
• The spouse of any member of the Armed Forces serving on active duty who has been listed as a prisoner of war or missing in action for more than 90 days.

Anyone with questions about eligibility should speak with their regional VA office.

For More Info:

Veterans seeking more detailed information concerning the VA home loan program may request:

VA Pamphlet 26-4, VA-Guaranteed Home Loans for Veterans, or

VA Pamphlet 26-6, To the Home-Buying Veteran,

from the nearest VA office. Loan Guaranty personnel at that office will also be pleased to answer specific questions and provide any other assistance they can. 

You can also access the VA Home Loans web site at www.homeloans.va.gov

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Zero down payment loans are designed to offer home ownership opportunities to borrowers with good credit but who lack the ability or desire to make a down payment on a home. It provides an option for those who wish to invest their savings in assets other than their home.

This type of financing is popular among both first time home buyers and experienced home buyers and you can use zero down payment loans for a purchase or a refinance. The fixed rate loan is also available for construction and home improvement of an owner occupied primary residence.

While you are not required to make a down payment, you must have 3% in the transaction. These funds are applied toward your closing costs and may come from your own funds, a gift from a relative, grant, or sale of assets you own.

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