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Georgia Million Mortgage Loan
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Georgia Million Mortgage Loan - Goergia residents have increasingly been seeking $1MM to $25 Million Mortgage Loan programs to purchase or refinance their holdings.One Percent Mortgage - One Percent Mortgages are widely advertised as being able to dramatically reduce your monthly mortgage payment. The one percent mortgage and other mortgages which offer rates from Zero to 4% in todays market are what may commonly be referred to as Option ARM or Cash Flow mortgages, and are marketed under a variety of names. Their common feature is a minimum payment option which is equivalent to what the payment would be on a one percent mortgage. This minimum payment option is in fact an option to defer interest, which is a powerful feature designed for borrowers who understand that the interest that they defer today will have to be paid at some point in the future.
Borrowers typically have more control of their amortization schedule with interest only loans.
One percent mortgage loans are usually a teaser rate for the first few months of a loan. After the teaser period is over borrowers will need to make a regular monthly payment. The exception to this is whats called a pay option loan where lenders give you the ability to make a 1 percent minimum payment, interest only payment or regular amortizing payment.
The One Percent Mortgage family and its relatives are excellent loans for people who understand how to take advantage of the ability to defer interest, but the one percent mortgage, two percent mortgage and every percent in between are highly sophisticated financial products and are not intended for borrowers who cannot benefit from negative amortization.
Borrowers who most frequently benefit from one percent mortgages and mortgages with start rates below one percent are those who derive most of their income from self employment, business ownership, passive income, long term capital gains, and bonuses. Hourly wage earners and borrowers with a fixed salary have also turned to one percent mortgages as a kind of insurance policy against temporary interruptions of income, especially when they lack the "rainy day" savings to withstand an unforeseen emergency situation which might disrupt their ability to pay their bills.
Whether the start rate on a one percent mortgage is one percent, two percent or any other percent in between, the minimum payment required during the initial period (normally 5 to 10 years) is about half of what a normal mortgage payment would be.
One percent mortgages may come with a variety of start rates. The lowest rate generally offered to the public is a one percent minimum payment, and the average rate offered is a minimum payment of between one percent and two percent. The lowest rate we offer is actually less than one percent, in fact it is just 0.25%, but this rate is available in select geographic areas only.
One Percent Mortgages and other minimum payment option loans are marketed under names such as Pick a Pay, Cash Flow, Pay Option, and Option ARM, as well as Smart Choice and Secure Advantage.
One Percent Mortgages and their like are characterized by having multiple payment options each month which allow the borrower to control the loan's amortization by choosing how much principal & interest to pay or not pay. The most common options are as follows:
1. Minimum Payment Option <= One Percent
2. Interest Only Pay Option
3. Fully Amortized 30 Year Option
4. Fully Amortized 15 Year Option
When a borrower elects to make the minimum payment on a One Percent Mortgage loan, they are not paying all of the interest due on the loan for that month. The difference between the one percent mortgage payment and the interest only payment on the same mortgage at the fully indexed rate is deferred, meaning that you don't have to pay it now! But when the home is sold, refinanced, or the loan recasts, the deferred interest will become payable.
Fixed Rate Loan - Fixed Rate Loans come in a few different shapes and sizes. If you are considering refinancing your adjustable rate mortgage to convert to a fixed rate loan, please review some of the most popular fixed rate loan options, and evaluate their pros and cons.
30 Year Fixed Rate Loan
25 Year Fixed Rate Loan
20 Year Fixed Rate Loan
15 Year Fixed Rate Loan
30 Year Bi-Weekly Fixed Rate Loan
30 Year Fixed Rate Cash Flow Option Loan
Adjustable Rate Mortgages with Fixed Rate Loan Periods
Convertible Fixed Rate Loan
Fixed rate loans offer borrowers stability without the anxiety of payment increases in the future.
In todays market where rates and payments are adjusting to record highs, many borrowers are changing their adjustable rate mortgage over to fixed rate products.
There are numerous choices available when shopping for a fixed rate mortgage loan product. Your first step should be to contact a mortgage broker to discuss your options and goals. No two borrowers are alike and its your mortgage brokers job to find the loan program that best suits your unique situation.
30 Year Fixed Rate Loan
Description: The most popular mortgage in America. Fixed Rate and Payment for 30 years designed to pay off the house by the end of the loan by including both Principal & Interest in the monthly payments.
Pros of a 30 Year Fixed Rate Loan:
30 Year Fixed Rate Loans are utterly predictable, there are no surprises. Due to the way 30 year fixed rate loan products are amortized, the payments over the first half of the loan are primarily interest and therefore tax deductible in most cases. A variety of government sponsored programs are available to make this particular variety of fixed rate loan more accessible to homeowners.
Cons of a 30 Year Fixed Rate Loan:
Payments on a 30 year fixed rate loan are comparatively higher than many adjustable rate loans, although the gap between 30 year fixed rate loans and ARM loans is narrowing. 30 year fixed rate loans
Fixed rate mortgages might be right for you if:
Want the security of a fixed principal and interest payment.
Think that interest rates will go up.
Are on a fixed or limited budget.
30 Year Fixed Rate Loan with Cash Flow Option
Description: A newcomer, the 30 year fixed rate loan with cash flow option offers a fixed rate for 30 years with 4 payment options ranging from a minimum payment which pays less than the required amount of interest to a 15 year fixed rate payment which allows payment of additional principal. Designed to pay off the home in 30 years by recasting in 10 years to a full principal and interest mortgage.
Pros of a 30 year fixed rate loan with cash flow option:
Very low minimum payment option. 30 year fixed rate loan programs with cash flow options offer the flexibility of an option arm with the security of a long term fixed rate, allowing borrowers who can capitalize on the added cash flow of making a minimum payment to defer interest at will for the first 10 years, effectively trading home equity for cash on an elective, optional basis as needed. Like a 30 year fixed rate loan with a built in home equity line of credit. A popular option amongst borrowers who wish to minimize mortgage payments for the first several years in their property, are interested in maximizing free cash flow over paying off their mortgage over the near term, and have substantial equity in their home. Allows borrowers with substantial business or passive income streams to maximize the amount of taxable gross income attributable to long term capital gains tax by minimizing monthly debt service requirements, effectively reducing income tax liabilities. Popular and appropriate for the self employed, investors, high net worth individuals, and wage earners with substantial periodic or bonus income. Very low minimum payment option provides borrowers with a much smaller monthly payment to come up with in the event of job loss, illness or disability, providing a fallback strategy and hedge against these most common factors leading to foreclosure. Fixed Rate for 30 years lends predictability to negative amortization characteristics which is a chief criticism of option ARM mortgages offering the same features. Often the only viable choice for borrowers refinancing out of an option ARM mortgage. Easy to qualify for if there is at least 20% equity in the home (no minimum credit score requirements in many cases), and fixed rates available are often lower than those otherwise available to borrowers with credit scores lower than 700 otherwise.
Cons of a 30 year fixed rate loan with cash flow option:
30 year fixed rate loan programs with cash flow options are only available at present to borrowers with 20% or more equity in their homes. Negative amortization features are considered a plus and a minus, however for borrowers who wish to pay off the mortgage on the home they are currently in, and can afford to make a larger payment today, a 15 year fixed rate loan may be the better choice, especially if you have a credit score over 760. Not recommended for borrowers who can only make the minimum payment, as the loan will convert to a full principal and interest mortgage at 10 years or the second recast, whichever is earlier. A very versatile financial product for special situations, which like a sharp knife can be a powerful and efficient tool in the right hands, but a trip to the emergency room in the wrong ones. If you want to own your home free and clear, can make a larger payment each month, have substantial assets and more than enough free cash flow, select a mortgage with a higher minimum payment to pay off your mortgage more quickly and save interest.
It's never too early to start looking into getting out of that ARM. A mortgage loan professional can help you work out a timeline for refinancing into a fixed rate mortgage, which will help you avoid a potentially (and almost certainly) costly adjustment.
Because Fixed rates are so low in todays market, unless one is getting an option ARM, Long Term Fixed rate mortgages remain the best option for most borrowers.
Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.
Million Mortgage Loan - $1 Million Mortgage Loan to $40 Million Mortgage Loan programs are referred to in the lending industry by the terms "super jumbo mortgage" or even "mega jumbo loan"
Jumbo mortgages are loans which exceed the Fannie Mae and Freddie Mac conforming loan amount limits. This is why Jumbo loans and super jumbo mortgages are often referred to as "non-conforming" jumbo loans or super jumbo mortgages. The jumbo mortgage limits for residential properties are as follows:
2007 Fannie Mae Conforming (non - Jumbo) Loan limits are as follows:
$417,000 Single Family Residence (SFR or 1-unit, most homes fall under this category)
$533,850 Two Family Residence (Duplex or 2-unit)
$645,300 Three Family Residence (Triplex or 3-unit)
$801,950 Four Family Residence (Quadplex or 4-unit)
Properties exceeding the abovementioned conforming loan limits are considered non conforming or Jumbo, super jumbo or mega jumbo for the purposes of the lending industry.
So what does this Jumbo Loan thing mean for $1 Million to $40 Million Mortgage Applicants?
Traditional, conventional lenders can write conforming, non-jumbo loans all day with relative impunity as Fannie Mae and Freddie Mac, large public/private-type institutional investors, will buy these loans so long as they meet very basic underwriting guidelines. So its very easy to get a non-Jumbo loan.
Regular Jumbo loans, from the conforming loan limit for the respective property type to about a $1 Million mortgage loan amount, are also relatively easy to sell toother banks and typical investors, and banks undertake more risk than they would on a conforming loan but not so much that they cannot efficiently underwrite these mortgages.
Where banks and other traditional, conventional mortgage lenders fall apart is on $1 Million to $40 Million mortgages. Because the traditional mortgage loan business requires lenders to be able to find a market to sell their mortgages so they can get back more money to write more loans, these banks and conventional institutions are very hesitant to undertake large loans unless the loan to value ratios are exceptionally low (meaning you borrow 50% or less of the value of the home). By virtue of this reluctance to write $1+ Million Mortgage Loans, these same lenders have very little experience executing these transactions, resulting in even more conservative loan qualifying criteria for Super jumbo mortgages. Add to that the fact that conventional lenders are set up primarily to serve the needs of "conforming" loan customers, which means they lack the personnel to handle complex multi million dollar real estate financing, and you can see why it is so hard to get an average mortgage broker, direct lender or bank to successfully execute a $1MM to $40 Million Mortgage loan.
So Who Handles Multi Million Dollar Mortgage Loan Financing?
$1MM to $1.5 Million Mortgage loan programs have some availability in the broader markets, however $2MM to $40 Million Mortgage loan products are almost exclusively the province of super jumbo mortgage specialists. Often drawn from the investment banking and hedge fund industries, these private firms handle the overwhelming majority of real estate financing for high net worth / high income borrowers. By bypassing the traditional lenders and banks and going straight to the underlying investors on Wall Street and otherwise, these private mortgage bankers and real estate financiers are capable of orchestrating complex transactions with significantly higher loan to value ratios than would otherwise be possible. A few are even able to allow 70%, 80%, 90% and even 100% financing (no money down) on $2MM to $40+ Million Mortgage Loans, by allowing you to use income producing assets which you retain control of in lieu of a down payment.
$1MM to $40 Million Mortgage Loan programs are available to borrowers in the following states:
Million Dollar Mortgages are available for the high net worth borrowers such as, but not limited to business executives, celebrities, professional sports stars, etc.
The average interest rates on jumbo mortgages are typically greater than is normal for conforming mortgages, and vary depending on property types and mortgage amount.
Loans over a 1 million dollars or super jumbo loans may require more verifications than smaller loan amounts. The higher the loan amount the higher the risk. More reserves may be required as well as higher fico scores.
One reason lenders prefer to have a higher down payment from jumbo loan seekers is the higher risk involved. Jumbo home prices can be more subjective and not as easily sold to a mainstream borrower, therefore many lenders may require two appraisals on a jumbo mortgage loan.
This post has been filed under : jumbo loan, super jumbo mortgage, million mortgage