Overview of Loan Products

Please review the following programs and complete the application. Someone from Mortgage Trust Group will contact you shortly after that.

Mortgage Trust Group offers the standard suite of mortgage loan options to give you the terms and rates that best suit your life and plans. Understanding your needs will help us determine what kind of mortgage is best for you. We'll help you identify your needs and work with you to choose the loan type that it is right for you.

These are the types of mortgages we offer and some information about them:

Fixed-rate mortgages: 30, 20, 15 and 10 year amortization
This is the most common type of mortgage. Fixed rate mortgages are available for 30 years, 20 years, 15 years, and even 10 years. On a 30-year loan, you pay 360 equal payments of principal and interest over the life of the loan. Fixed rate, fully amortized loans have two features. First, the interest rate set at the beginning of the mortgage stays the same over 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 term.

ARMs: 1 year, 3 year, 5 year, and 7 year (30/15 year amortization)
A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movement in an index rate. These loans generally begin with an introductory interest rate that is two percent below a fixed rate mortgage and could qualify you for a larger loan.

Index
The index of an ARM is the rate that the loan is tied to. Among the most common are the rates on 1, 3/1, 5/1 or 7/1.

Treasury securities
Other common indexes are LIBOR (London Interbank Offer Rate) and COFI (11th District Cost of Funds). These indexes usually go up and down with the general movement of interest rates. If the index rate moves up, so does your mortgage rate in most circumstances, and you will probably have higher monthly payments. On the other hand, if the index rate goes down, your monthly payment may go down.

Margin
The margin is the number of percentage points added to the index rate to calculate the ARM interest rate at each adjustment. The margin added to the index is known as the fully indexed rate. For example, if the current index is 3.50 percent and your loan has a margin of 2.00 percent, your fully indexed rate is 5.50 percent.

Caps
A limit on how much the interest rate on the monthly payments can change, either at each adjustment or during the life of the mortgage.

Other adjustable rate mortgage programs available.

Home Equity Loans
Mortgage financing that consists of a revolving line of credit secured by the fair market value of the home. These loans may be used for debt consolidation, education, renovations, vacations, purchase of a second home or investment properties, and many other purposes.

Second Mortgage
Typically a lien that falls in a second position to a first mortgage. Most second mortgages are amortized over a 15-year period, however they are also available in 20, 25, and 30 year terms. A second mortgage is a lump sum that has fully amortized payments made on a monthly basis in keeping with the agreed upon rate and term. A second mortgage is normally used in conjunction with a first mortgage to eliminate personal mortgage insurance (PMI) on either a purchase or refinance transaction.

Construction Loans/Land Loans
Our construction loan program offers payments of interest only for the first year. The program requires one closing. We also offer land-only rates.

Commercial Lending

Along with coordinating home loans, Mortgage Trust Group also works with businesses and commercial customers to craft mortgages for shopping malls, apartment buildings, industrial parks, golf courses, gas stations, and many other properties. Different options, requirements and documentation are needed for commercial lending. Decisions about these loans are made on a case-by-case basis.

If you are interested in a commercial loan, please call our offices at 800-684-4400 to discuss the details with our loan originators.

Federal Housing Administration

A stepping stone to be used when you don't quite qualify for conventional loans, but don't belong in high interest rate, non-conforming loans.

Higher debt ratios are allowed on FHA loans. These loan types are also more liberal on credit issues.

Closing costs and pre-paids can be paid by the seller.

FHA loans require only 3% down for up to a four family home (Three months worth of reserves are required for three and four family homes).

Funds given to the buyer as a gift are allowed for down payments, but cannot be counted as reserves.