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Oak Mortgage


Mortgage


Fixed Rate Mortgages

With a fixed-rate mortgage, the interest rate remains the same throughout the length of the loan. As a result, your principal and interest payments are predictable from the first payment to the last.

Fixed-rate loans are usually offered with repayment terms of 30, 25, 20 or 15 years.

The rates for fixed-rate loans are often slightly higher than the rates for adjustable-rate loans.

Fixed-rate loans are a good choice if you plan to remain in the same home for several years and/or if interest rates are expected to rise.

Calculate fixed loan payments

We can tell you more about fixed-rate loan programs.


Adjustable Rate Mortgages

Adjustable-rate mortgages are home loans with interest rates that vary based on changes in market interest rates.

Adjustable-rate mortgages are usually offered with 30-year terms.

The initial rate for an adjustable-rate mortgage is usually slightly lower than for a fixed-rate loan. That initial rate remains constant during an introductory period. As a general rule, the shorter the introductory period, the lower the initial interest rate. Often the fixed introductory period is set based on the length of time the borrower expects to own the home.

After the introductory period expires, the interest rate is subject to adjustment at predetermined intervals—usually every six months. Rate adjustments are based on market interest rates, but adjustment caps limit how much an interest rate can change in a specified time period.

Often, adjustable-rate mortgages offer borrowers the option of an interest-only loan for a fixed period of time. This results in a lower payment for that period.

Adjustable rate mortgages may be a good choice if you don’t plan to own the home for a long period of time, or if interest rates are high and expected to come down.

We can tell you more about adjustable-rate mortgages.


Reverse Mortgages

Call Mark Reilly at 215.642.6200 x1754 for more information

A Reverse Mortgage or HECM Loan Defined: 

A Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, is a Federal Housing Administration (FHA) insured loan which enables you to access a portion of your home’s equity to obtain tax-free funds without having to make monthly mortgage payments. If you are 62 years of age or older and have sufficient home equity, you may be able to get the cash you need to:

  • Pay off your existing mortgage
  • Pay off medical bills, vehicle loans or other debts
  • Improve your monthly cash flow
  • Fund necessary home repairs or renovations
  • Build a “safety net” for unplanned expenses

A Few of the Loan Benefits: 

  • Eliminates your existing monthly mortgage payments
  • You can stay in your home and maintain the title
  • Loan proceeds are tax-free and can be used any way you choose
  • Heirs inherit any remaining equity after paying off the HECM loan
  • You or your Heirs will never owe more than the home’s value at the end of the loan

Types of Loans: 

  • HECM Standard
    • The HECM Standard is designed for homeowners who need to borrow the maximum amount of their home’s equity. It is available with an adjustable rate and allows homeowners to receive their proceeds in various ways including as a lump-sum or a set monthly payment.
  • HECM for Purchase Loan
    • The HECM for Purchase can help homeowners buy their next home without having to make monthly mortgage payments. This loan enables homeowners to use the equity from the sale of a previous residence to buy their next primary home in one transaction. Regardless of how long you live in the home or what happens to your home’s value, you only make one, initial investment (down payment) towards the purchase.

Mark Reilly
Reverse Mortgage Specialist
NMLS 138469
Office:  215.642.6200 x1754
Toll Free: 1.800.787.8100
Email: mreilly@oakmortgageusa.com


First-Time Homebuyers

Buying your first home is a big step. The federal and state governments offer a variety of programs that can make taking that step easier for many would-be homeowners. These include government-insured mortgages, such as Federal Housing Administration (FHA) and Veterans Administration (VA) loans, and state-sponsored bond programs. To qualify for these loans, borrowers must fall within certain annual income limits. In addition, the Federal National Mortgage Association (FNMA, or Fannie Mae) offers start-up loans with low down-payment requirements.

A good first step for any first-time homebuyer is to talk with a professional mortgage consultant to see what options are available and what you can afford.

We can tell you more about loan options for first-time homebuyers.


FHA / VA Mortgages

Government-insured loans usually offer low down payments and below-market interest rates, as well as easier credit and income guidelines than conventional loans. That may make them a good option for first-time homebuyers, for borrowers with low to moderate incomes, or those with limited cash or minor credit problems.

  • Federal Housing Administration (FHA) loans: FHA loans allow qualified borrowers to purchase a home with a down payment of as little as 3.5% of the purchase price. There are several types of FHA loans. In addition to fixed loans and adjustable-rate mortgages (ARMs), FHA loans also include graduated payment mortgages and growing equity mortgages for borrows who expect their monthly earnings to increase over time. In addition, the Energy Efficient Mortgage (EEM) program allows borrowers to include the cost of energy efficiency improvements into their FHA loan.
  • Veterans Administration (VA) loans: VA loans offer flexible credit guidelines and often do not require a down payment. They are available to military service veterans, reservists and active-duty service members.

We can tell you more about government-sponsored loans and refinancing options.


State Bond Programs

Several states offer low interest home loans and other housing assistance for qualified low- and moderate-income buyers. For example, the New Jersey Housing Mortgage Finance Agency (NJHMFA) offers low-interest, fixed-rate 30-year mortgages. These loans are offered through approved lenders like Oak Mortgage Company. NJHMFA also offer down payment and closing cost assistance through a program called “Smart Start” enabling borrowers without a lot of money to still purchase a home.

Under federal law, to qualify for state-sponsored home purchase loans, buyers must fall within certain annual income limits. The loans are typically only available to first-time buyers or to buyers who have not owned and occupied a primary residence for a period of time. Limits also apply to the purchase price of the home; these limits often vary by location within the state. Buyers may be required to take credit counseling and/or homebuyer education courses.

In addition to low-interest loans, borrowers also may be eligible for down payment and/or closing cost assistance.

Learn more from the Pennsylvania Housing Finance Agency.

Learn more from the New Jersey Housing Resource Center.

We can tell you more about state bond programs.