All credit situations are considered at Spirit Financial
Rates for our mortgages are the lowest in the industry. Mortgages are easily applied for with our online applications. Click on the Online Application tab above.
Mortgage Product Types
The following is a description of each mortgage loan we offer and maybe helpful as you determined which best fits your needs and situation.
FIXED RATE PRODUCTS
30 Year Fixed Rate Mortgage - This is considered the safest and most conservative way to buy a house. This is a 30-year loan with an interest rate that will never change. As a result, your monthly payment will stay the same (except for taxes and insurance which always go up over time). This is generally the best way to go unless you are sure that you will move in a few years. If the market rates for mortgages drop significantly after you have secured your new loan, you can refinance at a later time.
15 Year Fixed Rate Mortgage - This is the same as a 30 Year Fixed Mortgage, except the loan is paid off sooner. You will own your house in 10 years. On average you will pay 50-75% (this percentage rate varies according to you interest rate) more every month versus the mortgage payments on a 30 year mortgage.
10 Year Fixed Rate Mortgage - This is the same as a 15 Year Fixed Mortgage, except the loan is paid off sooner. You will own your house in 15 years. On average you will pay 30-35% (this percentage rate varies according to you interest rate) more every month versus the mortgage payments on a 30 year mortgage.
ADJUSTABLE RATE PRODUCTS
Another way to finance a home is with a mortgage where the interest rate can change every year or at other specified intervals. The advantage to adjustable rate mortgages is that your initial payments are usually less than a fixed rate mortgage, however your rate will increase over time. There are several different variations of the adjustable rate mortgage.
1/1 Year Adjustable Rate Mortgage - This is a 30 Year loan which has a fixed interest rate for the first year and then changes to a 1 year adjustable rate for the rest of the loan (29 years). This loan is considered risky and is usually used by individuals who know they will be selling their property in a short period of time.
3/1 Year Adjustable Rate Mortgage - This is a 30 Year loan which has a fixed interest rate for the first three years and then changes to a 1 year adjustable for the last 2y years of the loan. Also, some people select this mortgage product if they want to increase the amount they can borrow by paying lower interest rate up front. This loan is also considered risky and is usually best suited to individual that know they will be selling within a few years.
5/1 Year Adjustable Rate Mortgage - This is very similar to the 3/1 adjustable. It is also a 30 year loan where the interest rate is fixed for the first five years and then changes to a 1 year adjustable for the last 25 years of the loan. This offers a lower interest rate than a regular fixed loan but not as low as a 3/1 or a 1 year adjustable. This type of mortgage is also considered risky, but is used by individuals who know that will stay at a property for less than 5 years.
7/1 Year Adjustable Rate Mortgage - This is also a 30 year loan where the interest rate is fixed for the first 7 years and then changes to a 1 year adjustable for the last 23 years of the loan. Borrowers pay a little less in interest than with a regular fixed mortgage but not as low as a 1 year adjustable mortgage.
10/1 Year Adjustable Mortgage - This is a 30 year loan where the interest rate is fixed for the first 10 years and then changes to a 1 year adjustable for the last 20 years. Borrowers will have a long period of fixed payments with a lower interest rate. This mortgage product is typically used by borrowers who know they will sell a property within 10 years.
OTHER PRODUCTS
No Income Verification - No income verification loans are popular with borrowers who are unwilling or unable to prove proof of income (W2's, Tax Returns, etc.). The interest rate is significantly higher to cover the risk of the loan.
Jumbo Mortgage - A jumbo loan is any residential or commercial mortgage with a loan amount of $417,000 or greater. Rates on jumbo loans tend to be slightly higher than loans of a lesser value because the lenders generally have a higher risk on these loans.
