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Fixed Rate Loans
The most common type of mortgage, a fixed rate loan has an interest and principal payment that stays the same over the life of the loan. You can choose a variety of repayment terms, with 15, 20 and 30 years being the most common. A fixed rate loan is a good choice if you plan to stay in your home for a long time, and prefer the security of budgeting for a fixed payment.
30 Year Fixed Rate Loan
- Keeps loan payments affordable by extending them over a long period of time
- Provides maximum tax-deductible interest
- Offers lowest monthly payment of the fixed rate loan choices
- As little as 0% down
20 Year Fixed Rate Loan
- Lower interest rate than a 30-year loan
- Saves money on total interest paid over the life of loan
- Builds equity and pay off your home fasterÂwith a higher monthly payment
- As little as 0% down
15 Year Fixed Rate Loan
- Builds equity faster
- Saves the most on interest paid over the life of the loan
- Higher payments than a 20 or 30 year home loan
- As little as 0% down
Adjustable Rate Mortgages (ARMs)
With an adjustable rate mortgage, the interest rate you pay is adjusted periodically according to changing market rates. This means when interest rates go up, your monthly home loan payments may go up. And, when interest rates go down, your monthly home loan payments may go down. How often your rates are adjusted depends on your loan terms. ARMs are attractive because they offer start rates that are lower than the interest rates of fixed rate home loans. This often enables you to begin with lower monthly payments and qualify for a larger loan. An ARM can be a good choice if you are planning to move within a few years.
Basic ARM
- Interest rate is adjusted every six months to 1 year
- As little as 0% down
- Allows you to start with a low payment
- Allows you to afford more of a loan
Basic ARM with Reduced Rate Option
- Allows you to start with an especially low rate
- Obtain a reduced interest rate in exchange for limits on refinancing
- Sell your home at any time without a penalty
Fixed Period ARM
- Provides advantage of low rate with the security of a fixed rate for a fixed time
- Offers a fixed rate for a period of time (3,5,7, or 10 years) that adjusts annually
- Good choice if you plan to move or refinance in a few years
Non-standard Loans
In addition to fixed rate and ARM loans, New World Mortgage provides a wide variety of non-standard loans.
Reduced Documentation Loans
- Minimum 5% down payment
- Available to salaried or self-employed borrowers
- Income and employment stated, but not verified
No Down Payment Loans
- Finance up to 100% of the purchase price
- Available on 30 and 15 year fixed rate programs
- Good credit required
"Jumbo" Loans
Exceeds the loan amounts allowed by Fannie Mae/Freddie Mac
Typically has a slightly higher interest rate and different requirements for down payment than smaller loans
Loan amounts up to $2 million
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