Capital Mortgage Funding

Loan Program

Fixed Rate Mortgage

Please Call Michelle Shamie at 1-313-670-5814

Explained:
A  fixed rate mortgage is beneficial to those who are looking for stability in  their monthly payment, which will not go up or down through out the life of the  loan.  Typically, if you plan to live in  your home for a long period of time, a fixed rate is optimal.

Advantages:

  • Interest rate  does not change
  • Payments remain  the same
  • If interest rates  drop, you can refinance
  • If interest rates  rise, your rate is protected
 Disadvantages:

  • Slightly  higher interest rate
  • Slightly  higher payments
  • Rates do  not decrease if interest rates drop

Term Lengths:
10,  15, 20, 25, 30, 40 years

Adjustable Rate Mortgage

Explained:
Adjustable  Rate Mortgages (ARMs) typically have a low interest rate for a fixed amount of  time at the beginning of the loan.  After  this time, the rate then adjusts every year, depending on the current market  conditions.  This product is good for  someone who plans on living in their house for a short period of time or those  who don’t mind the variability of their payments in exchange for the initial  low rate.

Advantages:

  • Lower initial  monthly payment
  • Rates and  payments may go down if rates drop
  • May qualify for  larger loan amount
  • 30 year term, no  balloon payment
 Disadvantages:

  • More risk
  • Payment may  change over time
  • Potential for higher payment if rates increase

Term Lengths:
10/1,  7/1, 5/1, 3/1 and 1 year ARM

Federal Housing Association (FHA) Mortgage

Explained:
The  FHA mortgage is a loan that is guaranteed by the government, eliminating the  need for private mortgage insurance.   Another advantage to an FHA mortgage is that you can qualify for the  loan with limited funds for a down payment (3.5%) though there are limits to the  loan amount.  Also, due to more relaxed  qualifying guidelines, those with less than perfect credit are able to qualify.

Advantages:

  • Easier to qualify
  • Smaller down  payment
  • Greater loan to  value
  • Ability to  Streamline refinance (see below)
 Disadvantages:

  • Upfront mortgage insurance is required
  • Monthly mortgage insurance is required for 5 years regardless of                 down payment or equity in home.

Term Lengths:
Fixed:  10, 15, 30 years

FHA Streamline
This allows people with FHA mortgages to refinance to  a lower rate with no costs, no new credit report and no new appraisal.

Advantages:

  • Lower monthly payments
  • No costs
  • No income or  credit qualifying
 Disadvantages:

  • None

Term  Lengths:
10, 15, and 30 years

Department of Veteran Affairs (VA) Mortgage

Explained:
Similar  to the FHA mortgage, a VA mortgage allows veterans with low income and  blemished credit to qualify for a loan.

Advantages:

  • Easier to qualify
  • No down payment  on loans up to $417,000
  • Interest rates  are similar to conventional loans
  • Eliminates PMI and MIP (monthly mortgage insurance
 Disadvantages:

  • Loan process time is longer
  • More  demanding appraisal standards
  • Upfront VA funding fee