Types of Loans

Thirty-Year Fixed Rate Mortgage

A 30 year fixed mortgage is possibly the most common type of mortgage loan. It has several characteristics that make it such a popular choice when financing a home purchase.

One of the key features of a 30 year fixed mortgage is its fixed interest rate. When you acquire the loan, the interest rate that you get at that time is the interest rate that you keep for the duration of the loan. Your only option to change the interest rate is if you choose to refinance. If you are able to lock a great interest rate when getting the mortgage, you are set. That is the rate for the next 30 years, assuming that you own the house that long.


Adjustable Rate Mortgages (ARM)

ARM. A mortgage with an interest rate that may change, usually in response to changes in the Treasury Bill rate or the prime rate. The purpose of the interest rate adjustment is primarily to bring the interest rate on the mortgage in line with market rates. The mortgage holder is protected by a maximum interest rate (called a ceiling), which might be reset annually. ARMs usually start with better rates than fixed rate mortgages, in order to compensate the borrower for the additional risk that future interest rate fluctuations will create.

2/1 Buy Down Mortgage

The 2/1 Buy-Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long-term rates. However, keeping the loan in place even for three full years or more will keep their average interest rate in line with the original market conditions.

Negative Amortization (Neg. Am) Loan

A gradual increase in mortgage debt that occurs when the monthly payment is insufficient to cover the interest due, and the balance owed keeps increasing (at least in the first few years).

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Center State Mortgage Company

Center State Mortgage has built a strong reputation as an outstanding mortgage brokerage firm, serving the lending needs of real estate professionals, builders and individual homebuyers throughout the state. Their professionalism and compassion for clients is what drives them to be even more successful.

They're a full service mortgage broker with an experienced staff offering expertise in every area of mortgage lending...from purchase to refinance to construction lending. We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs. Throughout the entire process the employees are there with you, providing you updates, conflict resolution, and other services to ensure the transaction goes smoothly. They also offer a special Mortgage Manager service if you are considering refinancing your mortgage.

And, now it's their pleasure to offer all of their exceptional mortgage services online. This new service is specifically designed for the busy client, you can look up mortgages, loan options, and other services, any time you want.

They offer the best mortgage tools available on the Internet - easy, convenient, on-line shopping for the best loan programs and most current rates available, together with the assistance of an experienced, "live" loan officer who is there to guide through any or all steps of the loan process to ensure that your transaction is flawless and smooth.