Types of Mortgages
Two of the most common types of mortgage loans are fixed-rate mortgages and adjustable rate mortgages (ARM). The interest rate on a fixed-rate mortgage will remain the same for the entire life of your loan while the interest rate on an adjustable rate mortgage (ARM) may adjust at regular intervals and may be tied to an economic index, such as a rate for Treasury securities. When the interest rate on an ARM adjusts it may cause your payment to increase. 10 Some adjustable rate mortgages allow the borrower to pay either the “interest only” or less than the “interest only.” In both options, none of the mortgage payment is applied towards the loan balance (principal). In a less than “interest only” option, the unpaid interest is added to your loan balance and you can owe more than the amount you initially borrowed. When the loan balance increases to the maximum amount the loan is “recast” and your loan payment may double or even triple. When faced with “payment shock,” you may discover too late that the loan payments no longer fit within your budget and that the loan is difficult to refinance. You may then be in danger of losing your home. WARNING: Choosing an ARM product could affect your ability to pay your mortgage in the future resulting in loan default or foreclosure. You need to become familiar with the features of ARM products to find the one that best fits your needs. If you decide to obtain an ARM, consider obtaining additional information. Additional information may be found by contacting the Federal Reserve Board.
Another option is a multi-currency mortgage, where the mortgage can be in Swiss Francs, Euro, Sterling, Yen etc. It should be noted that fluctuations in exchange rates can effect the US Dollar equivalent of the mortgage owed. Whilst this may work in your favour, it could also work against you.
Please see below our latest loan programs for foreign national mortgages in the USA. Note that these are subject to change at any time and are for information only. Please contact us to confirm.
|Mortgage Rate||Lending Locations||Maximum LTV||Loan Purpose||Documentation||Notes|
|4.0% 15 year fixed rate||All States||70%||Purchase and Refinance||Fully Documented*||Bank Account required. Rate & Term refi only|
|4.875% 7/1 ARM|
|80%||Purchases and Refinance||Fully Documented|
For the purchase of a main residence in the USA. Must have qualifying visa
|5.5% 5/1 ARM||AL, FL, TX, AR, CA, CO,NM||75%||Purchases and Refinance|
Rate & Term refi only
|5.5% 5/1 ARM||AL,FL, TX, AR, CA,CO,NM||50%||Cash-Out Refi||Fully Documented||Maximum Cash-Out $500,000|
|9.5% 15 year fixed||Selected States||60%||Purchase, Refi and cashout||Low Documentation||Investment & Commercial property only|
* Fully Documented mortgages require full disclosure of income. This may include copies of tax returns dating back the last 2 or 3 years. You will also need to provide satisfactory proof of identification, residency and source of deposit.