Maxim Home Loan offers a variety of loan programs. Whether you are in the process of purchasing a new home; building a new home; considering refinance your home; remodeling your home; or consolidating your debts, we will have a loan product to meet your needs.
Fixed Rate Mortgage
The available loan program of fixed rate mortgages usually come in 40 years, 30 years, 20 years, 15 years and even 10 years. The interest rate will remain fixed for the life of the loan that has been chosen.
Adjustable Rate Mortgage
An Adjustable Rate Mortgage (ARM) is a mortgage loan that does not charge a fixed rate of interest. Payments can be low if interest rates are low and will increase as rates rise. Adjustable rate mortgage loans can offer lower starting interest rates than fixed-rate loans, which translates into immediate savings on interest costs and increase purchasing power. For many buyers however, the lower interest rate of an ARM loan can also increase purchasing power. The number of times your payment can change depends on the type of ARM loan you choose. Most ARMs have caps on how much an interest rate may increase. The common ARM choices are 10/1 ARM, 7/1 ARM, 5/1 ARM, 3/1 ARM and 1 year ARM.
Interest Only Loan
An advance of money in which the installments pay only the interest that accumulates on the loan balance. The loan balance does not decrease with the payments. Usually the interest-only payments last for a limited period, after which payments rise and the borrower begins paying principal in addition to interest.
Most option Arms are based on one of three indexes: the 11th District Cost of Funds Index (the COFI), the 12-month moving Treasury average (the MTA), or the one-month London Interbank (the 1 month LIBOR). All of these move up and down roughly together, but the COFI has the smoothest ups and downs, the LIBOR is the most volatile (sometimes rocketing upward or plunging downward in just a month or two) and the MTA lies in the middle.
The rate on an option ARM is adjusted monthly, but the minimum payment is adjusted annually and remains fixed for a year. If rates rise afterward, then minimum payment doesn't cover all of the interest charged. When that happens, you own more on the mortgage at the end of the month than at the beginning of the month, even after making that minimum payment. This phenomenon is called negative amortization.
LPMI (Lender Paid Mortgage Insurance)
LPMI availability can vary between each state based on loan product and Mortgage Insurance Vendor. Availability depends on the state's insurance regulations and how each Mortgage Insurance Vendor has filed their various rate plans with the state insurance commission.
A mortgage that has level monthly payments over a stated term but which provides for a lump-sum payment to be due at the end of an previously specified time (e.g., five and seven year balloon mortgages, where the payment is fixed for 5 or 7 years, then the remaining balance becomes due and payable at the end of the term).
A mortgage loan that exceeds the limits set by Fannie Mae and Freddie Mac which is above $417,000 will be considered a jumbo loan. A jumbo mortgage will carry a higher interest rate than a conventional mortgage.
Home Equity Loan
Home Equity Loan is a fixed rate second mortgage product, using home's equity as collateral. Home Equity Loan provides the security of a fixed monthly payment for the term of the loan as long as 30 years.
Home Equity Credit Lines
Usually position as second lien, allowing a borrower to withdraw equity in property owned with specific credit limit. Basically, one can draw cash against his or her line of credit to use when and as needed. Home equity line programs typically involve variable interest rates rather than fixed rates.