GFI Loan Programs

Loan Programs

Fixed Rate Mortgages:

  • With a fixed rate mortgage loan the interest rate and your mortgage monthly payments remain consistent for the period of the loan. Fixed-rate mortgages are available for 30, 25, 20, 15 years or 10 years.

  • The most popular mortgage terms are 30 and 15 years. With the traditional 30-year fixed rate mortgage your monthly payments are lower than they would be on a shorter term loan.

Adjustable Rate Mortgages:

  • A mortgage whose interest rate is raised or lowered at periodic intervals according to the prevailing interest rates in the market.

FHA Loans:

  • The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit.

Conforming Loans:

  • Conventional loans may be conforming and non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two stockholder-owned corporations purchase mortgage loans complying with the guidelines from mortgage lending institutions, packages the mortgages into securities and sell the securities to investors. By doing so, Fannie Mae and Freddie Mac provide a continuous flow of affordable funds for home financing that results in the availability of mortgage credit for Americans.

  • Fannie Mae and Freddie Mac guidelines establish the maximum loan amount, borrower credit and income requirements, down payment, and suitable properties. Fannie Mae and Freddie Mac announces new loan limits every year.

Jumbo Loans:

  • Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as 'jumbo' loans. Because jumbo loans are bought and sold on a much smaller scale, they often have a little higher interest rate than conforming, but the spread between the two varies with the economy.

Balloon Loans:

  • Balloon loans are short-term fixed rate loans that have fixed monthly payments based usually upon a 30-year fully amortizing schedule and a lump sum payment at the end of its term. Usually they have terms of 3, 5, and 7 years.

  • Balloon loans with refinancing option allow borrowers to convert the mortgage at the end of the balloon period to a fixed rate loan - based upon the outstanding principal balance - if certain conditions are met. If you refinance the loan at maturity you need not be re-qualified, nor the property re-approved. The interest rate on the new loan is a current rate at the time of conversion. There might be a minimal processing fee to obtain the new loan. The most popular terms are 5/25 Balloon, and 7/23 Balloon.