Loans have a fixed interest rate for the duration of the loan period.  The loan period can be from 10 to 40 years.  Obviously, the longer the loan period the lower the monthly payment.  The 30 year period is the most common.

Loans that have interest rates that adjust during the loan and are not fixed.  There are loans in which the interest rate adjusts monthly and there are loans that the interest rate doesn't adjust until the 10th year of the loan.  Typically, the more frequent the loan interest rate adjusts, the lower the initial interest rate.

Loans that require less documentation than the traditional loan.  This is meant to save time for the complicated borrower.  Not all limited documentation loans are the same and limited documentation loans are available in both fixed rates and adjustable rate variations.

Loans used for the construction of a residence and is typically, a short term loan  - one to two years - and is then replaced with a permanent loan.  Most construction loans have adjustable interest rates that vary according the 'Prime Lending Rate'.

Sub Prime is the term used for less than perfect credit.  Sub Prime loans can have both fixed rates and adjustable rates.  The interest rates are usually determined by several factors including the borrowers credit score.  Typically the higher the credit score the lower the interest rate.

A home equity loan is usually a 2nd mortgage on a residence.  A home equity loan can either be a fixed rate loan or an adjustable rate loan.  A home equity loan can also be in form of a line of credit rather than a fixed rate and fixed term loan.

For a more detailed explanation comparing various types of home equity loans please visit our home equity loan website www.prontohomeequity.com .

Loans available to qualified borrowers not requiring a down payment.  This loan can be comprised of one single loan for 100% of the purchase price, or it can be comprised of two loans which will total 100% of the sales price.  100% loans can have both fixed rates and adjustable rates.

Loans that require only the interest portion of the payment to be made.  This is creates a smaller payment than paying both interest and principal on a loan.  This loan can have both an adjustable rate or a fixed rate.

The Signature Bridge Loan (SBL) is an excellent source of short term financing enabling a borrower to use existing home equity to purchase a new residence.   The primary purpose of the SBL is to allow a homeseller to purchase their desired home when it is most advantageous, rather than waiting for the current home to sell.

Some of the details of the Signature Bridge Loan:

• The loan is typically for 6 months but may be extended.
• There are no payments on the bridge loan. Interest accrues during the loan term and is added to the payoff balance at the end of the loan. For example - the interest on a $50,000 SBL with a 10% interest rate will be $2500 after six months, therefore, the payoff balance on the SBL will be $52,500.
• The interest rate is typically 2% over the prime rate.
• The closing costs are minimal, usually less than $500 plus any county/state recording taxes.
• In most cases, the current residence mortgage payment is not included in the debt ratio of the new mortgage being applied for.  Some restrictiions apply.
• The SBL uses up to 80% of equity in the current residence.  Equity is defined as the difference between the appraised value and the outstanding balances of any mortgages or liens.
• The SBL can only be used in conjunction with financing a new residence.

Please contact any of the Associate Brokers with Signature Home Loans for more information about the Signature Bridge Loan or apply online from our Home page.