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).

Center State Mortgage is your #1 source for home loans and mortgage needs! They have an experienced and successful track record to make your home loan process fast, easy, and affordable. Choose Center State Mortgage for your home buying needs!

Home Purchase Basics

Congratulations on your decision to buy a new home! As a homeowner, there are many important decisions to be made, especially if it is your first time purchasing a home. Here are some basic hints and tips.

A home purchase may be your largest financial transaction to date, so it's important to make the right decisions and to keep an eye on the details. By using a professional real estate agent the entire process should be smooth, efficient, pleasurable, and most importantly fast!

Your Real Estate Agent should:

1) Preview homes for you and decide which ones are the best for your price range.

2) Show you homes that fit your individual needs and wants

3) Help you make the right decision on which is considered a "good buy" by determining the market and probable causes that may increase or decrease the value of your home over time.

Negotiate the best deal for you. With a Pre-Qualification letter from us in hand, your Real Estate Agent will be able to demonstrate that you are a qualified and capable borrower. This is a very important step in the process, ultimately, it could determine whether or not you will get the home.

Your Mortgage Broker and Loan Officer should:

1) Help you make the right decision about which loan to choose from, depending on your needs and circumstances.

2) Keep you up-to-date on the entire loan process

3) Keep your Real Estate Agent informed of our loan progress

4) Get you the best loan at the lowest interest rates to save you money!

Center State Mortgage is your #1 source for home loans and home purchasing needs! Count on them to help the transaction go smoothly! Visit Center State Mortgage today and get on the road to your purchase of a new home!

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.