Licensed Mortgage Banker in PA and NJ

What's The Right Loan For Me?

Not too many years ago, you couldn't even ask this question. All loans were fixed rate, and carried a fixed monthly payment that lasted for a certain number of years. Today you have a wide range of loans to choose from. Federated Lending Corporation (FLC) has one of the most extensive product lines in the industry.

3/1 Adjustable Mortgage

30 year Amortization
Rate is fixed for three years then adjusts each year based on the 1 year treasury +2.75%.
Caps are 2% per year and 6% for the term of the loan.    OR

 

30 year Amortization

Rate is fixed for three years then adjusts each year based on the 1 year LIBOR + 2.25%

Caps are 2% per year, and 6% for the term of the loan.

 

 

 

Loan Range: $100,000 to $417,000
Maximum LTV: Purchase: 95% Refinance: 95% Cash-Out: 80%
Program Strengths: Lowest qualifying rate of all loans allows borrower to "qualify" for the largest loan. A good combination of fixed rate security and low starting rate.
Program Drawbacks: Three years fixed may not be enough to give one "peace of mind".
Recommendations: Great program for  those who plan on being in a home for 3 to 5 years. Good program for anyone who believes that rates will be lower at some point in the next five years.