Which Mortgage Program is Right for You?
Our mortgage loan portfolio includes a variety of mortgage options available up and down the East Coast. Headquartered in Norwood, MA, Poli Mortgage loan programs are available in all of New England as well as Florida, North Carolina, Kentucky, Tennessee, Maryland, Virginia, Pennsylvania, and Alabama.
Our Plymouth and Boston, Massachusetts branches, in addition to our other locations, offer the best mortgage programs with the lowest interest rates available. All of our loan programs can be used to purchase a home or refinance an existing home loan.
Poli Mortgage Program Categories
The most popular two mortgage program categories are known as Conventional Conforming or Government. Programs within the Conforming category are available through Freddie Mac and Fannie Mae, (these are referred to as "agency" mortgages) these mortgages are not insured by the government.
We underwrite agency purchase mortgages (Fannie / Freddie) with as little as a 5% down payment. However it is important to note that Private Mortgage Insurance (PMI) may be required with less than a 20% down payment.
Government loans are insured by the full faith and backing of the U.S. Government. Given the presence of Government Backed Insurance a much lower down payment is required for the borrower when using FHA financing to purchase a home.
FHA financing is also available to refinance your home, many people think that FHA Mortgages are only for First Time Home Buyers, this is not true. Many times FHA rates are lower than conventional Fannie / Freddie financing.
There are three government institutions offering mortgage programs. They are, FHA (Federal Housing Administration), VA (Veterans Administration) and USDA mortgage programs for rural communities. These institutions offer fixed rate and adjustable rate mortgage programs which will vary by program.
It is important to note that Poli Mortgage Group is a Direct Endorsed FHA Lender. This means that we have the ability to underwrite FHA Purchase, FHA Refinance and FHA Renovation mortgages in-house. We are not required to send our Federal Housing Administration mortgages out for review like so many other mortgage companies.
Fixed Interest Rate Mortgages
A fixed rate mortgage is our most popular mortgage program here at Poli, offering a fixed interest rate for a specific number of years. The most common types of fixed interest rate mortgages are a 30 year fixed rate, and a 15 year fixed rate loan however, amortization periods of 10, 20 and 25 years are also available. With any fixed rate mortgage program, you can be secure knowing your interest rate will not change throughout the life of the mortgage, offering you piece of mind should market interest rates rise in the future.
Common Fixed Rate Mortgage Loan Programs:
The 30-Year Fixed-Rate Mortgage
With 30 years to pay off the loan, these mortgage programs allow you to borrow more money than financing options with shorter amortization periods.
The majority of the mortgages we originate and underwrite in-house here at Poli Mortgage Group are Thirty (30) Year Fixed Rate Mortgages.
The 15-Year Fixed-Rate Mortgage
With a 15 year amortization period, these loans will have a higher mortgage payment than a 30-year fixed rate mortgage of the same size. If you can afford a slightly higher monthly payment, a 15-year Fixed-Rate Mortgage may be for you. Since the term of the loan is half as long, you will enjoy significant savings on the total amount of interest paid over the life of the mortgage.
Fixed Rate Mortgage – Advantages
You interest rate will never go up and your payment will remain level.
Fixed Rate Mortgage - Disadvantages
The longer the term of the fixed interest rate loan program you choose, the higher interest rate will be. Since your interest rate, and hence your initial payment are higher than another types of mortgage programs, you may not be able to borrow as much as you could with another type of loan program such as an Adjustable rate mortgage.
Adjustable Rate Mortgages
An Adjustable rate mortgage, more commonly known as an ARM is a loan program that starts with a lower interest rate and shorter initial fixed period than the fixed rate mortgage programs. With the potential fluctuation of your initial interest rate based on the U.S. economic changes over time. Adjustable rate mortgage loan programs carry borrower protection whereby there will be an annual and lifetime cap on your interest rate. These interest rates are typically slightly lower than fixed-rate mortgages, but expose you to the risk that market interest rates may rise in the future.
Customarily we would only suggest an Adjustable Rate Mortgage when you plan on selling your home within the fixed period. In certain instances Jumbo Mortgage Programs require the ARM feature.
Adjustable Rate Mortgage – Most Common Options
The 3 in a 3/1 ARM indicates the length of time your initial interest rate will be honored, and the 1, indicates the interest rate is re-adjusted annually, based on market conditions for the remaining length of the term (in this case, 27 years).
The initial interest rate is locked for 5 years, and then annually adjusted for the remaining 25 years.
The initial interest rate is locked for 7 years and then annually adjusted for the remaining 23 years.
INTEREST RATE CAPS ON ADJUSTABLE RATE MORTGAGES
ARM loan programs often have an interest rate cap which places a limit on the amount your interest rate can increase. Interest caps appear as 5/2/5 which means:
The initial cap (in this example 5), indicates after the first initial year, your interest rate will not increase more than 5 percentage points, the 2 represents the periodic adjustment cap which limits the amount the interest rate can adjust up or down from one adjustment period to another, and the number is known as a lifetime cap. The lifetime cap limits the interest rate increase over the life of the loan. All Adjustable Rate mortgages must have a lifetime cap.
There are other adjustable rate mortgage programs offered with a higher and lower terms. Please contact your Poli Mortgage Loan Officer for more information.
Loans for Renovating A Home
203K Rehab Loan Program (Repair and Restore Home Loan Program)
This program is a FHA loan program for borrowers who are searching for a primary residence to purchase which is in need of repairs or restoration. If you've found a home that needs a little work or you would like to finance repairs on your existing home, Poli Mortgage Group has a great loan program for you.
The Repair and Restore mortgage program allows the borrower to refinance or purchase a home in need of repairs, while allowing access to additional funds up to $35,000 to use towards repairs and restorations. Whether the new home is a short sale or foreclosure home needing repairs, or one that is on the market after a long residence by a previous owner, the funds can be used for minor repairs such as roofs, storm windows, basement waterproofing or for small kitchen remodeling to name a few.
The additional funds can also be used to purchase major appliances including installation. Eligible properties include owner occupied single family properties, 2-4 unit properties, condo’s (additional funds for interior only), townhouses, and row houses.
Veteran's Administration Loan Program
VA loans are available for honorably discharged veterans and their unmarried widow or widowers and are offered to mortgage lenders by the United States Government, Department of Veteran Affairs (VA). The VA loan program allows veterans looking to purchase a new home a mortgage program with a lower down payment or no down payment (vs. traditional loan programs).
Jumbo Mortgage Programs
Jumbo mortgages are most often mortgages over $417,000 and are not considered a conforming (Fannie Mae / Freddie Mac) mortgage. The maximum conventional loan amount is set by the U.S. government and the loan limit can change annually. Given the fact that the term Jumbo refers to a mortgage balance greater than the conventional limit, the baseline for Jumbo Mortgage Programs can change periodically.
Use one of our mortgage calculators to determine what program may be best for your financial situation.
Additional Mortgage Information