Return to Top Fixed versus adjustable loans

Choosing a fixed or an adjustable rate loan will often depend on circumstances and choice. Each has its advantages and disadvantages based primarily on your tolerance for risk and the rise and fall of interest rates.

Fixed Rate Mortgages
Fixed Rate Mortgages (FRM) have a consistent, unchanging monthly payment and interest rate for principal and interest during the life of the loan.

Advantages: Payments and rates remain the same for the duration of the loan.
Disadvantages: Interest rates tend to be higher than beginning interest rates on ARM.

Adjustable Rate Mortgages
Adjustable Rate Mortgages (ARM) are tied to fluctuating indexes and as such can rise and fall in accordance with index transitions.

Advantages: Commonly result in lower initial payments due to lower interest rates.
Disadvantages: Payments and interest rates will rise and fall depending on the index influences.

Return to Top What loan programs are available to first-time homebuyers?

Depending on your personal circumstances, you may have several different loan programs available to you as a 1^st time home buyer Activus can offer you loans from No Money Down or loans up to ONLY 3% Down. We even have programs that can finance up to 103% of your purchase price. So, call and speak to one of our mortgage consultants at 1-877-FUND-321 to find out which program is best for you.

Return to Top What things do I need to be aware of as a first-time homebuyer?

Buying a home can be your largest purchase in your life. Remember that you are in control of purchasing your home; so don’t allow anyone to pressure you into making a purchase you are not comfortable with. Take your time and evaluate all your options before committing to a contract or a loan.

• Here are some tips and questions to ask yourself as you start on your first steps to home ownership!
• Know how much you can afford first.
• Yourself, as well as the Realtor and Seller need to know if your can obtain financing.
• You need to know about available financing and special programs
• Is FHA right for you?
• Are you eligible for Federal VA financing?
• What about No Money Down financing?
• Are there any state sponsored programs available?
• What about Zero Down Rural Housing Programs?
• Can I borrow the down payment?
• Are Gifts allowed?
• Can the Seller pay my down payment and closing costs?
• What are closing costs?

If you require more information to these questions or need help, call and speak to one of our Mortgage Consultants at 1-877-FUND-321. There is no cost or obligation whatsoever to you. Service makes us different and financing is made easy.

Return to Top Should I refinance?

The significant and most common reason for refinancing is to save you money. You can save a lot of money every month by lowering the interest rate on your current loan. How much you can save depends on a lot of factors. You have to consider how much it will cost in fees in order to realize the savings in your payment.

Saving money through refinancing can be achieved by obtaining a lower interest rate, which causes your monthly mortgage payment to be reduced or by reducing the term of the loan, which saves money over the life of the loan. Even if the fees get added on to the loan balance, they're still there. A good option for a lot of people is to get a loan with no points or fees. But those loans come with higher interest rates.

You may also consider refinancing in order to convert your adjustable loan to a fixed loan. The main reason for this is to obtain stability and security offered by a fixed loan rate over the term of the loan. Adjustable rates are popular when rates are higher whereas when rates are low most people tend to lock in for a fixed loan rate.

If your intentions are to consolidate debts and replace high interest loans with one low rate mortgage than you may want to consider refinancing. The loans being consolidated may include second mortgages, credit lines, student loans, credit cards, consumer charge cards, or other debt you may have. In many cases, debt consolidation saves you money by saving on taxes and avoiding paying high interest rates. Mortgage loan interest is tax deductible whereas interest on consumer loans is not tax deductible.

Return to Top When is the best time to refinance?

Mortgage companies make profits and cover their financial risk in two ways: through the loan's interest rate and upfront fees (points). When deciding to refinance, you should consider how much money you will save by paying now or later. If you plan on having the home - and the loan - for a longer period of time then it may make sense to refinance. Alternatively, if you plan on selling the home - or closing the loan - in a short period of time then refinancing may not be a good option.

Return to Top What should I do if I continually struggle to pay my bills?

The best thing to do is seek professional counseling to help you with your credit situation. Consumer Credit Counseling Services is a nationwide nonprofit organization that provides credit counseling free or for a reasonable fee. They can help you develop a solid plan for regaining control of your finances.

Return to Top When should I pay points on a loan?

The decision to pay points on a loan depends heavily on your circumstances. In certain situations, it can be very advantageous for you to pay points on your loan.

Generally speaking, the longer you plan to keep a loan the more sense it makes to pay points to get a lower interest rate. One way to determine this is to calculate the break-even point of how long you would have to keep the loan in order to save over the cost of paying points up front.

If you are comparing two loans with the same interest rate, and one of them doesn't require you to pay points, then there is no reason to pay points. Another consideration may be tax purposes. Points paid on a new home loan are immediately deductible as interest.