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.

7/1 Adjustable Mortgage

30 Year Amortization
Rate is fixed for seven 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 seven years then adjusts each year based on the 1 year LIBOR + 2.25%.

Caps are 5% for the initial adjustment, then 2% per year, and 5% for the term of the loan.

 

 

Loan Range: $100,000 to $417,000
Maximum LTV: Purchase: 95% Refinance: 95% Cash-Out: 80%
Program Strengths: Has a lower rate than the 30 Year fixed.
Program Drawbacks: The rate is usually not dramatically lower than 30 year fixed.
Recommendations: If you plan on being in your loan for seven years or less, want a low rate, and are insistent on an ARM.