Conventional Loan Programs
Conventional loans are traditional home mortgages used for primary residence, second homes or investment purposes. There are standard underwriting guidelines for conventional conforming loans up to $417,000. These loans are available as a fixed or variable (ARM) rate with a variety of repayment terms. Borrowers typically have the means for a down payment and good credit histories (680 or higher). Private Mortgage Insurance is required for loan to values greater than 80%. Used for primary residence, second homes or investment purposes
- Fixed Rate Mortgage Fixed Rate Mortgages provide the security of a fixed principal and interest payment for the term of the loan. The term of a fixed rate mortgage can provide the flexibility needed to meet your specific goals. Common fixed-rate mortgage terms are 10, 15, 20 or 30 years.
- Adjustable Rate Mortgage An Adjustable Rate Mortgage (ARM) features a variable interest rate which may periodically adjust after a set term, generally one to ten years. For example, a 5/1 ARM will start with a competitively low interest rate for a five-year period which will be below a standard fixed-rate loan. After five years the interest rate will reset based upon the loan’s margin and the index (e.g. LIBOR, Treasury, etc.) with which it is tied. Your interest rate may go up or down, or may stay the same depending upon the prevailing index at time of adjustment. ARMs can save on interest and offer a lower monthly payment. They are completely predictable with upper and lower end caps on how much the interest rates will increase, or decrease.
Jumbo Mortgage
If the anticipated amount of your mortgage loan exceeds $417,000, we offer a variety of mortgage options that will meet your needs. Jumbo loans, also known as Non-Conforming Loans can be either fixed or adjustable rate mortgages. Underwriting guidelines will vary depending on program selected, down payment and actual loan amount.
FHA/VA Loan Programs (Owner Occupied Purchases)
- FHA (Federal Housing Administration) backed loans are ideal for first-time home buyers, low- to moderate-income borrowers or those buyer’s that have limited resources for down payment and closing costs. Minimum down payment is 3.5% (all of which can be a gift). The seller can contribute up to 6% towards closing costs, prepaids and points. Underwriting guidelines are more lenient than conventional guidelines.
The 2012 FHA loan limits for St. Louis MSA are:
- One-Family: $281,250
- Two-Family: $360,050
- Three-Family: $435,200
- Four-Family: $540,850
*Loan limits are specific to each county in Missouri.
- VA (Veterans Administration) loans are available to individuals who have served or are currently in the U.S. armed forces that meet eligibility requirements. VA mortgages may be provided with no down payment requirement. Loan amounts may be as much as $417,000 with full entitlement. Requirements are generally 2 years in the armed forces with veteran’s benefits. A Certificate of Eligibility is required. The seller can pay closing costs and prepaid items. Veterans can purchase a home with no money down. Seller can assist with closing costs and debts up to 4%. Eligibility requires veterans to have served a minimum of 2 years during peace time or 90 days during conflict. National Guard and Reserves are eligible after serving 6 years.
St. Louis MORTGAGE INTEREST RATES for February 19, 2013:
- Conventional 30-Year Fixed 3.625%/ 3.902% APR
- Conventional 15-Year Fixed 2.875%/2.972% APR
- Conventional 7/1 ARM 2.750%/ 3.477% APR
- FHA/VA 30 Year Fixed 3.25%/4.160% APR
- Jumbo 5/1 ARM 2.625%/ 2.426% APR
- Jumbo 15 yr Fixed 3.000%/ 3.094% APR
- Jumbo 30 yr Fixed 4.125%/ 4.219% APR
*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.
Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website: www.paramountmortgage.com
For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
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