Types Of Mortgages

Texas Cash-out (equity) loans
Allow you to borrow up to 80% of the equity in your home. You are able to use this money to pay off bills, remodel or for whatever use you might have. Sometimes certain debts have to be paid off to qualify. There are fixed terms available from 10-30 years. Apply here.

Fixed Rate Mortgages
These are favorable for those who expect to stay in their home for a long period of time. Your interest rate will stay the same for the entire duration of your loan. The most common amount of time for this loan is 15, 20, and 30 years.

Adjustable Rate Loans
Interest rates in this loan are changed periodically to keep in time with changing market rates. Monthly rates start out less than a fixed rate mortgage so you can typically qualify for a larger loan. These loans are favorable for people who expect to stay in their homes for a short period of time or whose income will increase significantly in the short-term (i.e. resident doctor). The ARMs interest rate is tied to a financial index. The most common are:

• Treasury Index ARM - Tied into the weekly average yield of US treasury securities. Interest rate will adjust every six months, annually, or every 3 years.
• CD Index ARM - These are tied to the certificate of deposit indexes. Rates and payments adjust every 6 months.
• Cost of Funds ARM (COFi) - COFi ARMs are indexed to actual cost that a particular group of institutions pay to borrow money. COFi can adjust every month, 6 months, or year.
• The London Interbank Offered Rate (LIBOR) ARM - This rate is tied into what international rates lend and borrow funds at in the London Interbank market. You may choose an ARM that adjusts every 6 months.
• Initial Fixed Period ARM - This ARM does not adjust until several years after you take out the initial loan. You can get these in 3, 5, 7 or 10 year fixed periods.
• Two-Step Mortgage - A special type of ARM because it only adjusts one time. This happens either at 5 or 7 years. The new rate can never be higher than 6 percentage points of your initial loan.

• FHA Loans - FHA mortgages have a maximum loan limit that varies depending on an average cost of housing in a given region. You can typically purchase a home with a very low down payment of 3 to 5 percent of the FHA appraisal value or purchase price.
• VA Loans - Qualified veterans can buy a house costing up to $203,000 with no down payment. Qualification guidelines are typically the most flexible of any mortgage.

About DFW Loan Brokers

If you are seeking commercial financing anywhere in the U.S or residential financing in the state of Texas, then look no further. DFW LoanBrokers has access to more than 70 lenders and 350 programs; so let us complete the search for you.