VA Loans
Centric Mortgage is committed to helping Veterans lower their payments on their homes, on other debts when possible, and also to purchase homes for their families.
Our founder, Craig M. Clark, is an industry leading VA Mortgage advocate and expert - having led the VA Lending division at the Largest VA lender in the country at the time Freedom Mortgage, which is now one of our biggest lenders.
The VA IRRRL (Interest Rate Reduction Loan) is extraordinarily easy for a veteran to qualify for. The rate must be lowered per the VA in order to benefit the Veteran.
The VA loan is a $0 down payment mortgage option available to Veterans, Service Members and select military spouses. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). The VA Home Loan was created in 1944 by the United States government to help returning service members purchase homes without needing a down payment or excellent credit. This historic benefit program has guaranteed more than 22 million VA loans to help veterans, active duty military members and their families purchase homes or refinance their mortgages.
Cash-out up to as much as 100% of the home's value may also be available to Vets to consolidate debt, to do home improvements, and more.
Today, the VA Mortgage is more important than ever.
Call (215) 921-9693 or (888) 473-4350 for more info.
FHA Loans
FHA loans are a good option for first-time homebuyers who may not have saved enough for a large down payment. Even borrowers who have suffered from bankruptcy or foreclosures may qualify for an FHA-backed mortgage.
Many borrowers can also use FHA financing to take cash out of their home's equity to pay off debt, do home improvements, etc.
An FHA Loan is a mortgage that's insured by the Federal Housing Administration. They allow borrowers to finance homes with down payments as low as 3.5% and are especially popular with first-time homebuyers.
Please call a Centric Mortgage licensed loan officer for more information (215) 921-9693
Home Equity loans
Fixed rate Home Equity loans Fixed and Home Equity Lines of Credit
What is a second mortgage?
A second mortgage is another loan taken against a property that is already mortgaged. Many people consider using their home equity to finance large financial needs, but mortgage industry jargon has confused the meaning of certain terms – including second mortgage home equity loan and home equity line of credit (HELOC). A second loan, or mortgage, against your house will either be a home equity loan, which is a lump-sum loan with a fixed term and rate, or a HELOC, which features variable rates and continuing access to funds.
Is a second home mortgage right for you?
A loan to purchase a home is usually the first mortgage lien recorded on a property; subsequent loans depend on the amount of owners’ equity in the home and generally require a new appraisal. Homeowners may use the money from these second mortgages – available as a lump sum home equity loan or as a home equity line of credit – for any purpose. Deciding which loan is right for you depends on the loan's purpose and your personal spending habits.
What is a home equity loan?
A home equity loan is usually a fixed-rate loan distributed in one lump sum, with terms that range from 5 to 30 years. You pay it back in fixed monthly installments. This might be a good loan if you anticipate a large one-time expense such as a wedding, the purchase of a second home, or debt consolidation. A fixed rate and predictable monthly payment can help you budget as you work toward your financial goals.
When to consider a home equity line of credit (HELOC)
If you need extra money intermittently, a variable-rate home equity line of credit (HELOC) might be your best choice. Once the lender approves you for a maximum line amount, you can access the available funds as you need them. Use your Home Equity Line of Credit Visa Access Card anywhere Visa is accepted, write a check, visit a branch or ATM, or log in to Online or Mobile Banking and transfer money to your U.S. Bank savings or checking account. You may have ongoing access to funds for 10 years, called the draw period, following the date you open your line of credit. After the draw period you'll have a repayment period of 20 years.
Monthly minimum payments are variable and based on the amount of the line balance and the variable interest rate. As you pay the money back, the funds are available again on your HELOC. This provides you with a renewable source of funding during the 10-year draw period. This is a good option if you anticipate the need to make periodic payments for tuition or remodeling
Fixed Rate mortgages
Buying a home can be fun and exciting. Figuring out the financing details, not so much. Even though housing prices and mortgage rates gyrate over time, one constant buyers can rely on to stay the same is a fixed-rate mortgage.
What is a fixed-rate mortgage?
A fixed-rate mortgage has an interest rate that remains the same for the life of the loan. In other words, your total monthly payment of principal and interest will remain the same over time. (Note: Your mortgage payments can fluctuate, though, if your property taxes or homeowners insurance rates fluctuate.) A fixed-rate mortgage is the most popular type of financing because it offers predictability and stability for your budget.
How long do I repay a fixed-rate mortgage?
The mortgage term is the number of years you repay the loan. Fixed-rate mortgages usually come in terms of 15 or 30 years.
Here are some pros and cons of each term: 30-year
Pro: For any given loan amount, the monthly payments are lower than a shorter-term mortgage.
Cons: You pay more total interest over the life of the loan compared with a shorter term.
The interest rate is higher.
15-year
Pros:
You pay less total interest over the life of the loan.
The interest rate is lower.
Con:
For a given loan amount, the monthly payments are higher.
Many borrowers prefer a 30-year, fixed-rate mortgage over a 15-year loan because the monthly payment is lower for the same loan amount. Choosing a longer fixed term means you can borrow more money, too. It can also free up your monthly cash flow for other financial goals, such as saving for emergencies, retirement or your child’s college tuition.
A 15-year fixed mortgage is ideal for people who have the cash flow and want to pay off their home faster at less interest. Your monthly payments will be higher, though, because you’re repaying more principal so run the numbers with your lender to ensure you can afford it without skimping on other financial goals.
Self Employed and 1099 Borrowers
Guidelines for self-employed borrowers
Guidelines for self-employed home buyers and refinancings which includes lowering your existing interest rate, lowering your monthly payment, shortening your loan term, and even taking cash out to do home improvements, consolidating debt, etc. have loosened up over the years. We at Centric Mortgage pride ourselves on our expertise and ability to properly assess a Self Employed person's opportunities and our ability to help them capitalize on them.
Please call a Centric Mortgage licensed loan officer for more information (215) 921-9693
ARMs - Adjustable Rate Mortgages
https://files.consumerfinance.gov/f/201401_cfpb_booklet_charm.pdf
When you get a mortgage, you can choose a fixed-rate or adjustable-rate mortgage, known as an ARM. While fixed-rate mortgages keep the same interest rate for the life of the loan, adjustable-rate mortgages have fluctuating rates.
What is an adjustable-rate mortgage?
An adjustable-rate mortgage, or ARM, is a home loan with an interest rate that can change periodically. This means that the monthly payments can go up or down. Generally, the initial interest rate is lower than that of a comparable fixed-rate mortgage. After that period ends, interest rates — and your monthly payments — can go lower or higher.
Interest rates are unpredictable, though in recent decades they’ve tended to trend up and down over multi-year cycles. The U.S. has been in an upward interest rate trend since about 2016, but the five years before that rates were low and flat.
See how mortgage rates compare between different loan types.
Fixed-rate periods
The most popular adjustable-rate mortgage is the 5/1 ARM:
The 5/1 ARM’s introductory rate lasts for five years. (That’s the “5” in 5/1.)
The 5/1 ARM’s introductory rate lasts for five years. (That’s the “5” in 5/1.)
After that, the interest rate can change every year. (That’s the “1” in 5/1.)
Some lenders offer 3/1 ARMs, 7/1 ARMs and 10/1 ARMs.
Adjustable rate mortgages follow rate indexes and margins
After the fixed-rate period ends, the interest rate on an adjustable-rate mortgage moves up and down based on the index it is tied to. The index is an interest rate set by market forces and published by a neutral party. There are many indexes, and the loan paperwork identifies which index a particular adjustable-rate mortgage follows.
To set the ARM rate, the lender takes the index rate and adds an agreed-upon number of percentage points, called the margin. The index rate can change, but the margin does not.
For example, if the index is 1.25 percent and the margin is 3 percentage points, they are added together for an interest rate of 4.25 percent. If, a year later, the index is 1.5 percent, then the interest rate on your loan will rise to 4.5 percent.
Major indexes for adjustable-rate mortgages
Most adjustable-rate mortgage rates are tied to the performance of one of three major indexes.
Weekly constant maturity yield on one-year Treasury bill. The yield debt securities issued by the U.S. Treasury are paying, as tracked by the Federal Reserve Board.
11th District cost of funds index (COFI). The interest financial institutions in the western U.S. are paying on deposits they hold.
London Interbank Offered Rate (Libor). The rate most international banks are charging each other on large loans. Libor will be phased out by the end of 2021.
Sky’s not the limit on rates
You’re insulated from possible steep year-to-year increases in monthly payments because ARMs come with caps limiting the amount by which rates and payments can change.
Caps come in several forms:
A periodic rate cap limits how much the interest rate can change from one year to the next.
A lifetime rate cap limits how much the interest rate can rise over the life of the loan.
A payment cap limits the amount the monthly payment can rise over the life of the loan in dollars, rather than how much the rate can change in percentage points.