Buying or refinancing a home can be an exasperating experience for anyone, especially for co-operative and condo purchasers and refinancers. The task is a complex one. There is a huge array of available products, a mountain of complex paperwork to complete and often an uncooperative managing agent or board to deal with. This application process is difficult, time consuming and often frustrating for even those already experienced in owning real estate. Certified Mortgage, Inc., a New York State mortgage broker with over 30 years experience, can help borrowers find the right mortgage at the best rate in a professional manner and simplify the whole process.
Following are basic explanations of some common mortgage terms:
Conforming Loans: A conforming mortgage is one that is packaged for resale on the secondary mortgage market to Fannie Mae and Freddie Mac, 2 quasi-governmental agencies that buy mortgages in the market. For the 2005 they have set a cap of $359,650 for what they call a “conforming loan.” These loans traditionally have lower interest rates than larger loans because these agencies buy them from the banks. The best product for these loans is usually the 30 or 15 year fixed mortgage. If borrowers think they will stay in their homes for a significant period of time and would like to lock in historically low interest rates, they should get a 30 year fixed mortgage. A loan that is paid off over 15 years will have higher monthly and may be more difficult to qualify for financially.
Jumbo Loans: Mortgages greater than $359,650 are called "Jumbo" mortgages. There is a large selection of Jumbo loan products with very competitive rates available. Jumbo mortgages have been a specialty of our firm for many years.
ARMs (Adjustable Rate Mortgages): Mortgages where rates are fixed for a an initial period of time – anywhere from one month to 10 years, and after that period of time, the interest rate adjusts either annually or monthly. ARMs are now available as “interest only” mortgages. This means that the required payment for the initial fixed period requires only that interest be paid with no payment of principal required. The borrowers have the option of making a principal payment at any time during the initial rate lock period that will immediately reduce the monthly payment for subsequent months. This option is currently very popular with people who receive bonuses as a significant part of their overall income. The average time that Manhattanites own their apartments is seven years. These products are attractive to people who may not be in their homes for 30 years.
Co-op Loans: Due to the fact that co-op purchasers are purchasing shares in a corporation and not real property, the application process can be more demanding. There is generally much more financial disclosure and paperwork required by a co-op. Often there is a personal interview with the board of the co-op. Many lenders are not willing to make loans to co-operatives. Condo applications though usually less restrictive than co-op's, still are more challenging than buying a single family home.
Certified Mortgage, Inc. offers Upper East Siders a unique opportunity to cut through the maze of real estate financing and select a product suited specifically to their clients needs. Our seasoned professionals have been in the business for more than 30 years and have the expertise to procure the most competitively priced mortgages promptly. We have relationships with over 100 financial institutions and will be able to fit your needs with any product currently available for you at the best rates.
Finding the lowest possible rate for our borrowers has been a hallmark of our success for many years and is one of the reasons that our business in mostly referral and repeat business from existing clients. We dedicate the same work ethic to studio apartments as we do multi-million dollar apartments. We also provide expert service for borrowers with bad credit, for investment properties and for foreign nationals financing properties in the United States.
As a wholesale broker, lenders give us a substantial discount on rates. Clients actually PAY LESS than they would if they were to apply directly to the same bank. Our years of experience in the mortgage business enable us do the mortgage shopping for you in a very efficient and cost-effective way. Any borrower utilizing our services will be assured that they are obtaining the best available mortgage and that the process will be completed in an expeditious and professional manner.
Navigating the financing of a real estate purchase or refinancing can be a trying event for even the most patient person. Please call Certified Mortgage, Inc. @ (212) 252-9200 to discuss your mortgage needs. We are also licensed in New Jersey and Connecticut.
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