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| 30 yr fixed |
| 30 yr fixed Jumbo |
| CalHfa 35 yr Fixed Interest Only Plus |
| 2-1 Buydown |
| 5/1 ARM |
| 5/1 ARM Jumbo |
| 10/1 ARM |
| 10/1 ARM Jumbo |
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30 yr fixed
30- and 15-Year Fixed Rate Mortgages
There are basically two main loans, the 30-Year Fixed and the 15-Year Fixed. The 30-Year Fixed Rate Mortgage has a stability feature. The reason one takes this type of loan is because there is a consistent payment, one that you can be rest assured for the next 30 years will never change. So the main feature of a 30-year fixed is the stability; however, the trade off is that you are going to pay in most cases a higher rate of interest than on other types of loan.
The other type of loan is the 15 year fixed rate mortgage. 15 year notes are typically about 1/2 percent less then their 30 year counterparts and is paid over 15 years.
Term: 30 years
Maximum Amount: $417,000
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30 yr fixed Jumbo
Same as the 30 year fixed, with loan amounts over $417,000.
Term: 30 years
Maximum Amount: $1,000,000
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CalHfa 35 yr Fixed Interest Only Plus
A 35 year fixed rate with an interest only option for the first five years? This CalHfa product is tailored for the first time home buyer. It allows for a lower initial payment with he interest only feature as well as loan term lower payments with the 35 year option.
Term: 35 years
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2-1 Buydown
 Over the last seven or eight years, the
2-1 buydown loan program has all but disappeared from the face of the earth.
However, it is a great loan program, especially in an increasing interest rate market or for first time homebuyers who are looking to ease into their house payments.
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5/1 ARM
Adjustable Rate Mortgages have 3 main features, the first is called Margin, the second is called Index and the third is called Caps.
"A Margin is the fixed or constant portion of your adjustable that never changes. It stays the same for the duration of the loan. The Index is the variance. This is the portion of your Adjustable that makes it an Adjustable. If you take this fixed Margin and add it to the varying Index, you derive your interest rate. Accordingly, Margin + Index = Interest Rate.
"There are different types of indices. There is the 11th District Cost of Funds, the Monthly Treasury Average, The One Year Treasury Bill, the Six Month Libor, etc. Each of them has their own strengths and weaknesses.
The 11th District Cost of Funds is the slowest moving index, and the one many people like because there is very little volatility built in to it. The Monthly Treasury Bill, the One Year Treasury and the Six Month Libor are much more volatile and much more aggressive in their movement.
When you take this moving Index and add it to the Margin, you have the interest rate. The Margin becomes a critical component to the Adjustable Rate Mortgage because it is the spread above that varying Index that derives the interest rate.
Term: 30 years
Maximum Amount: $417,000
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5/1 ARM Jumbo
Term: 30 years
Maximum Amount: $1,000,000
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10/1 ARM
Adjustable Rate Mortgages have 3 main features, the first is called Margin, the second is called Index and the third is called Caps.
"A Margin is the fixed or constant portion of your adjustable that never changes. It stays the same for the duration of the loan. The Index is the variance. This is the portion of your Adjustable that makes it an Adjustable. If you take this fixed Margin and add it to the varying Index, you derive your interest rate. Accordingly, Margin + Index = Interest Rate.
"There are different types of indices. There is the 11th District Cost of Funds, the Monthly Treasury Average, The One Year Treasury Bill, the Six Month Libor, etc. Each of them has their own strengths and weaknesses.
The 11th District Cost of Funds is the slowest moving index, and the one many people like because there is very little volatility built in to it. The Monthly Treasury Bill, the One Year Treasury and the Six Month Libor are much more volatile and much more aggressive in their movement.
When you take this moving Index and add it to the Margin, you have the interest rate. The Margin becomes a critical component to the Adjustable Rate Mortgage because it is the spread above that varying Index that derives the interest rate.
Term: 30 years
Maximum Amount: $417,000
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10/1 ARM Jumbo
Same as above with a loan amount of over $417,000.
Term: 30 years
Maximum Amount: $1,000,000
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Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $8,340. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors.
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