Even if a borrower currently has poor credit, 2 or 3 years is typically ample time to repair credit scores and qualify for a lower rate and payment. This time frame is well suited to credit repair which extends beyond the occasional late mortgage payment.

   These programs most striking feature is that the interest rate and payment is fixed for an extended introductory period – either 2 years (24 months) or 3 years (36 months). After this point in time the loan adjusts as an ARM loan, as is described above. Again, with an ARM it is important to understand the index and margin, along with the periodic and lifetime caps on changes in the rate.

   The most important decision to make with this product is whether to obtain a 2-year or a 3-year fixed period. That choice depends on what the money market’s “yield curve” is at the time of your application. The yield curve determines the difference between the interest rate of a 2-year fixed period versus a 3-year fixed period. In a “normal yield curve” the 3-year money is more expensive than two year money, creating a significant difference in rate due to the uncertainty of the longer time frame. In a “flat yield curve” there is uncertainty about the direction of rates and there is little to no difference between 2-year and 3-year rates, indicating an opportunity to lock-in longer (3-years) for the same rate. Only rarely is there an “inverted yield curve” when short-term rates are higher than long-term rates, usually due to a current economic problem that is not forecast to continue. This is an opportunity for a 3-year lock-in, or to consider a 30-Year Fixed Rate.

• Adjustable Rate Mortgage (ARM)
• Fixed Rate for 2 or 3 Years (open document)
• 30 Year Fixed Rate Mortgage
• 15 Year Fixed Rate Mortgage
• Hard Money Loans

Detailed Information (Credit Categories)

General Loan Program Descriptions

• Cash Out Home Loans 
• Debt Consolidation Loan 
• Financing Options for Self-Employed 
• Home Purchase Loans  
• Imperfect or Poor Credit 
• Home Loan Refinance