The traditional fixed rate mortgage is the most common type of loan program, where monthly principal and interest payments never change during the life of the loan. Fixed rate mortgages are available in terms ranging from 10 to 30 years and can be paid off at any time without penalty. This type of mortgage is structured, or "amortized" so that it will be completely paid off by the end of the loan term.

Fixed Rate Mortgages are available for Conventional, FHA, VA, USDA and Jumbo loans.

Adjustable Rate Mortgages (ARM)'s are loans whose interest rate can vary during the loan's term. These loans usually have a fixed interest rate for an initial period of time and then can adjust based on current market conditions. Adjustable rate mortgages are usually amortized over a period of 30 years with the initial rate being fixed for anywhere from 1 month to 10 years. All ARM loans have a "margin" plus an "index." Margins on loans range from 1.75% to 3.5% depending on the index and the amount financed in relation to the property value.

When the time comes for the ARM to adjust, the margin will be added to the index and typically rounded to the nearest 1/8 of one percent to arrive at the new interest rate. That rate will then be fixed for the next adjustment period. This adjustment can occur every year, but there are factors limiting how much the rates can adjust. These factors are called "caps". Suppose you had a "3/1 ARM" with an initial cap of 2%, a lifetime cap of 6%, and initial interest rate of 4.25%. The highest rate you could have in the fourth year would be 6.25%, and the highest rate you could have during the life of the loan would be 10.25%.

FHA home loans are mortgage loans that are insured against default by the Federal Housing Administration (FHA) and must comply with FHA guidelines and loan limits (which may differ from Conventional, VA and USDA). FHA loans are available for single family and multifamily homes. These home loans allow banks to continuously issue loans without much risk or capital requirements. The FHA doesn't issue loans or set interest rates, it just guarantees against default.

FHA loans allow individuals whom might not qualify for a conventional mortgage obtain a loan, especially first time home buyers. These loans offer low minimum down payments, reasonable credit expectations, and flexible income requirements.

FHA has both a fixed rate and an ARM program available.

The VA Loan provides veterans with a federally guaranteed home loan which requires no down payment and must comply with VA guidelines and loan limits (which differ from Conventional, FHA and USDA). This program was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans.

The Veterans Administration provides insurance to lenders in the case that you may default on a loan. VA home loans are available in all 50 states. The major advantage to a VA home loan is that there is no down payment required to purchase a home.

A VA loan may also have reduced closing costs and no prepayment penalties. Additionally there are services that may be offered to veterans in danger of defaulting on their loans. VA home loans are available to military personal that have either served 181 days during peacetime, 90 days during war, or a spouse of serviceman either killed or missing in action.

VA has both a fixed rate and an ARM program available.

The United States Department of Agriculture's (USDA) Rural Housing Service provides lenders guarantees on loans with up to 100% financing for qualified^* customers living in rural areas around the country. Going beyond farms and ranches, these loans may be a viable option for anyone who is purchasing a home and/or property outside a major metropolitan area. USDA loans allow a greater flexibility for the borrower with regard to the loan requirements and down payment amount. Before you apply for a USDA loan it is important to make sure your property meets the guidelines to qualify for the loan. Our loan officers will help you step by step through the USDA loan process.

Conventional conforming mortgages are loans that meet the guidelines and loan limits of Fannie Mae and Freddie Mac (government sponsored agencies that establish guidelines for mortgage lenders). Most mortgages in the U.S. conform to these guidelines and are considered conventional loans. Fixed and ARM mortgage programs are available for conventional loans.

A jumbo mortgage exceeds the loan limits established by Fannie Mae (FNMA) and Freddie Mac (FHLMC). Contact Guardian for current limit, which generally changes annually. Since jumbo loans exceed these guidelines, the interest rates are generally higher than a conventional conforming loan. Fixed and ARM mortgage programs are available for jumbo loans.

Refinancing is when you already own the property and wish to obtain a new mortgage on that property. Most loan programs are available when refinancing. Everyone has different goals when refinancing, such as:lowering rate, or taking out cash for home improvements or debt consolidation.

Borrowers that presently own a home and their mortgage balance exceeds the value of the property may be able to refinance to lower the interest rate. Fannie Mae, Freddie Mac, FHA, or VA must own the loan. Please contact Guardian Financial Network loan originator, who will analyze your property for eligibility for this type of refinance.