Community Central Mortgage Loan Programs

The right type of mortgage for you depends on many different factors. There isn't a single or simple answer to this question. The right type of mortgage for you depends on many different factors:

• Your current financial picture.
• How you expect your finances to change.
• How long you intend to keep your house.
• How comfortable you are with your mortgage payment changing.

For example, a short term fixed-rate mortgage can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher. An adjustable rate mortgage may get you started with a lower monthly payment than a fixed-rate mortgage -- but your payments could get higher when the interest rate changes.

The best way to find the "right" answer is to discuss your finances, your plans and financial prospects, and your preferences frankly with a mortgage professional at Community Central Mortgage Company.

Fixed Rate Mortgages

The most common type of mortgage program where your monthly payments for interest and principal never change. Fixed-rate mortgages are available for a variety of terms. There are also "bi-weekly" mortgages, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 "months" worth, every year.) Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term.

During the early amortization period, a large percentage of the monthly payment is used for paying the interest. As the loan is paid down, more of the monthly payment is applied to principal.

Adjustable Rate Mortgages (ARM)

These loans generally begin with an interest rate that is below a comparable fixed rate mortgage, and could allow you to buy a more expensive home. However, the interest rate changes at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up, too. However, if rates go down, your mortgage payment will drop also.

Community Central Mortgage Company also offers mortgages that combine aspects of fixed and adjustable rate mortgages - starting at a low fixed-rate for seven to ten years, for example, then adjusting to market conditions. Ask your mortgage professional about these and other special kinds of mortgages that fit your specific financial situation.

Choosing an ARM with an index that reacts quickly lets you take full advantage of falling interest rates. Be sure to sit down with your Community Central Mortgage Company professional to explore all of your options.

Introductory Rate ARM's

Most ARM's have a low introductory rate, which is good anywhere from 1 month to as long as 10 years. A few options are available to fit your individual needs and your risk tolerance with the various market instruments.

ARMs with different indexes are available for both purchases and refinances. Choosing an ARM with an index that reacts quickly lets you take full advantage of falling interest rates. An index that lags behind the market lets you take advantage of lower rates after market rates have started to adjust upward.

The interest rate and monthly payment can change based on adjustments to the index rate.

12-Month Treasury Average ARM

Has a maximum interest rate adjustment of 2% every 12 months. The treasury Average index generally reacts more slowly in fluctuating markets so adjustments in the ARM interest rate will lag behind some other market indicators.

London Inter Bank Offered Rate (LIBOR)

LIBOR is the rate on dollar-denominated deposits, also know as Eurodollars, traded between banks in London. The index is quoted for one month, three months, six months as well as one-year periods.

LIBOR is the base interest rate paid on deposits between banks in the Eurodollar market. A Eurodollar is a dollar deposited in a bank in a country where the currency is not the dollar. The Eurodollar market has been around for over 40 years and is a major component of the International financial market. London is the center of the Euromarket in terms of volume.

The LIBOR rate quoted in the Wall Street Journal is an average of rate quotes from five major banks: Bank of America, Barclays, Bank of Tokyo, Deutsche Bank and Swiss Bank.

The most common quote for mortgages is the 6-month quote. LIBOR's cost of money is a widely monitored international interest rate indicator. LIBOR is currently being used by both Fannie Mae and Freddie Mac as an index on the loans they purchase.

LIBOR is quoted daily in the Wall Street Journal's Money Rates and compares most closely to the 1-Year Treasury Security index.

Balloon Mortgages

Balloon loans are short term mortgages that have some features of a fixed rate mortgage. The loans provide a level payment feature during the term of the loan, but as opposed to a fixed rate mortgage, balloon loans do not fully amortize over the original term. Balloon loans can have many types of maturities, but most balloons that are first mortgages have a short term.

At the end of the loan term there is still a remaining principal loan balance and the mortgage company generally requires that the loan be paid in full, which can be accomplished by refinancing. Many companies have other options such as a conversion feature at the end of the term. For example, the loan may convert to a fixed rate loan at the fixed market rate plus 3/8 of a percentage point. Your conversion can be guaranteed based on certain criteria such as having made your last 24 payments on time.

Construction Permanent Draw Loan Option

Construction/Permanent draw loans combine the features of a construction loan with the features of a permanent loan into one convenient construction loan package. This type of construction loan provides for construction draw disbursements from your loan to fund the construction of your home as it is being built.

Construction "End" Loan Option

If you can pay your builder progress payments out of your own funds, you may want to consider a construction "end" loan. This allows you to bring the mortgage money to the table when the house is completed.

FHA Loans

HUD has allowed millions of American's to realize the dream of home ownership through a loan program known as the FHA, or Federal Housing Authority. With an FHA-Insured Mortgage, the federal government insures Community Central Mortgage Company against loss in case the home buyer defaults on the loan. This program was set-up so that Americans who can't afford the traditional 10% or 20% down payment required by most lenders can still buy a home. Many homes can be purchased using an FHA-Insured Mortgage. An FHA Insured Mortgage will allow you to purchase a home with a down payment of 3 1/2% or less. At Community Central Mortgage Company, our Loan Officers are fully trained and have the ability to incorporate many "Home Grant" and State Housing Assistance Programs to lower your down payment requirements. Often times, you can purchase a home with a "Zero" down payment. Let us show you how we can take the confusion out of the Home Buying process.

Our Loan Officers can help you with an FHA Loan even if you have...

• No credit history
• Been turned down by a bank
• Minimal savings for your down payment
• Previous Credit challenges due to circumstances beyond your control
• Have previously owned a home before, don't worry the FHA Loan is available to all borrowers, not just first time home buyers!

VA Loans

Through the Veterans Administration (VA) Home Loan Guaranty Program. A lender, such as our company- Community Central Mortgage Company, offers and originates VA loans. VA then guarantees a percentage of the loan to the lender against loss if the house payments are not made, and is intended to encourage lenders to offer more favorable rates and terms. The amount of the VA guaranty on each loan depends on the loan amount and whether the Veteran has used some previous entitlement. With the current level of maximum guarantee, a veteran who hasn't previously used the benefit may be able to obtain a VA loan of up to $417,000.00 with no down payment and no closing costs. If you're contemplating purchasing a home with a value higher than $417,000- a down payment will be required on the difference.

Our Loan Officers can help you with a VA Loan. Here are a few of the many benefits of a VA Guaranteed Home Loan:

• No down payment is required up to $417,000.00
• Limited to no costs to the Veteran Buyer.
• No Monthly Mortgage Insurance Premiums to pay
• Flexibility of negotiating interest rates
• Owned a home before? The VA Loan is available to all borrowers, not just first time home buyers!

First Time Home Buyer Loans

At Community Central Mortgage Company our Loan Officers are "Certified First Time Buyer Specialists." This means you are one step closer to realizing your dream of becoming a homeowner.

Community Central Mortgage Company was created to make the dream of home ownership a reality for everyone, even you.

Your first step should be to meet with one of our mortgage professionals. We will work with you one on one, transforming your dream of home ownership into reality.

Minimum Down Payment Loans

How can we get you a mortgage with minimum down?

Simply put, mortgage insurance protects the mortgage company against financial loss if a homeowner stops making mortgage payments. Mortgage companies usually require insurance on low down payment loans for protection in the event that the homeowner fails to make his or her payments.

Although the cost of the mortgage insurance is paid by the home buyer, or borrower, the mortgage insurer works directly with the mortgage company.

Mortgage insurance is not the same as credit life insurance, also called mortgage life insurance.

This type of policy repays an outstanding mortgage balance upon the death of the person who took out the insurance policy.

Mortgage insurance can usually be canceled by the home buyer after there is at least 20 percent equity in the home. Borrowers can contact their loan provider to obtain the procedure for canceling their mortgage insurance. Guidelines for canceling private mortgage insurance are set by investors who will usually require an appraisal on the property. Your loan provider can recommend qualified local appraisers.

Equity Loans

Do you want to make home improvements? Buying a Vacation Home? Consolidating debt? Finance an education? Put your home to work for you with a Home Equity loan or line of credit.

• Low introductory rate
• Revolving line of credit accessible by simply writing a check.
• Interest-only payments based on the balance outstanding.
• Interest may be tax-deductible*

* Please consult a tax advisor regarding the deductibility of interest.