At Monarch Mortgage we represent hundred of lenders and have many different mortgage products. However, it is our view that for the vast majority of clients the best option is a fixed rate mortgage, which we offer as 10, 15, 20 or 30 year options. In today's current economic turmoil we recommend that customers take a conservative approach to their mortgage.
If you insist, and only after we are comfortable that you understand the risks, we will discuss other mortgage programs with you.
Below is a description of some of the mortgage categories. In today's market programs change often so please contact a loan officer today to make sure the program you are interested is still available.
Interest Only & Interest First Mortgages
One Time Close Construction to Permanent Mortgages
A fixed rate mortgage is a mortgage in which there is one rate locked in for the course of a term, 10 years, 15 years, 20 years, 30 years or 40 years. Each month a borrower makes a payment which includes both principal and interest. The repayment of the mortgage takes place on a sliding scale with each payment being broker into a portion toward principal and a portion toward interest. Typically the payment is weighted more heavily toward interest in the beginning and more heavily toward principal in the end. This repayment process is called the amortization schedule.
A fixed rate mortgage is well suited to someone looking at staying in a property for an extended period of time. It is also well suited to someone who likes the security of a locked rate. This is an extremely conservative mortgage program and offers the highest rates of any conforming loan option, although rates are very low right now from a historical stand point.
Due to the volatile nature of adjustable rate mortgages, Monarch Mortgage requires customers seeking an adjustable rate mortgage to talk directly with the owner of the company, Ken Raskin. These products can be confusing and as we take our fiduciary responsibility to our clients very seriously we want to be one hundred percent certain that you understand, not only the benefits, but more importantly the risks to these programs.
Interest Only & Interest First Mortgages
Due to the volatile nature of interest only mortgages, Monarch Mortgage requires customers seeking an interest only mortgage to talk directly with the owner of the company, Ken Raskin. These products can be confusing and as we take our fiduciary responsibility to our clients very seriously we want to be one hundred percent certain that you understand, not only the benefits, but more importantly the risks to these programs.
One Time Close Construction to Permanent Mortgages
Monarch Mortgage’s one time close construction to permanent (C2P) programs are perhaps what we are best known for. A C2P loan is for a borrower who is interested in building a home and then paying that home off over time in a traditional mortgage. The C2P programs are available as fixed rate or adjustable rate mortgages and you can lock or cap your interest rate between the start of construction and the completion. During the construction phase you’ll make interest only payments as the funds are disbursed, upon completion your loan modifies from construction to permanent, there is not an additional closing.
Monarch Mortgage offers a wide variety of C2P loans, some which require as little as 5% down. You can typically roll in the cost of land, improvements, closing costs and of course construction cost. Construction lending is typically based off of the future value or appraised value of the home.
Home Equity Line of Credit (HELOC)
A home equity line is exactly what it sounds like, a loan which is secured by the equity you have in your house. Equity is the difference between what your house will appraise for and what you owe on it. There are numerous HELOC options, some available with little or no closing costs. Rates on these programs are typically based on the prime rate which can adjust as the Federal Reserve makes changes.
Monarch Mortgage recommends that you think seriously before taking out a home equity line. While we offer equity lines up to 95% of the value of your home, it is a good idea to maintain a reasonable equity position in your home, especially with housing prices experiencing such fluctuation.
Perhaps you would like to purchase a lot that you will someday build a home on. Monarch Mortgage offers land only programs with as little as 20% down.