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Program Options
Premier Lending offers a full line of outstanding loan programs, which can be customized to fit your financial and transactional goals. Listed below are our standard programs:
| Jumbo loan: | Loan amounts exceeding $227,150. |
| Piggyback 2nd mortgage: | Done at the same time as your 1st
mortgage. |
| FHA loan: | FHA (Federal Housing
Administration) does not originate loans. Their purpose
is to guarantee lenders that should a default occur, the
lenders loss is insured by the government. Non-FHA loans
are insured by Private Mortgage Insurance companies
(PMI). Every County has a maximum loan
amount. |
| VA loans: | Same as FHA explanation, except the VA (Veterans Administration) is the agency that insures the lender against default. |
Adjustable Rate Mortgages
An adjustable rate mortgage has an interest
rate that changes periodically, usually in relation to an index,
during agreed upon set time frames. In return for receiving a
lower starting interest rate, the borrower assumes greater risk
in the later years, as a result of not knowing what future
interest rate adjustments will bring.
| Conversion: | Your mortgage may contain a
clause that lets you convert to a fixed rate, at
designated times. Special fees/adjustments may be
necessary to obtain this convertible feature. |
| Index: | Most lenders tie interest rate
changes to an index rate. If the index moves up, so to
will your interest rate (and visa versa). Some common
indexes are: Treasury bills, prime rate, cost of funds,
and LIBOR (London inter-bank offering rate). |
| Interest Rate Caps: | Each ARM loan has a cap that
limits how much your interest rate can increase, during
the life of the loan and for each adjustment. For
example: a program with 2/5 caps would mean that your
rate can increase/decrease 2% at each adjustment, with a
5% maximum over the interest rate that you started at
(over the life of the loan). |
| Margin: | To determine the new interest rate, lenders add percentage points to the current rate of the specified index. For example: a typical margin might be 2.75%. |
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