Loan Programs and Loan Options

Only you know what is right for your financial situation and in today's lending market there are many options to choose from. Sometimes the differences in loan programs can be subtle but significant. We offer a variety of loan programs to fit your needs. This page provides an overview of many of the different programs we have. Contact us to find out what programs are currently available, or for any other related questions.

HOME OWNERSHIP ACCELERATOR

SAVE THOUSANDS IN INTEREST

PAY OFF IN HALF THE TIME

NO CHANGE TO SPENDING HABITS

With the CMG Home Ownership Accelerator, you deposit your entire paycheck into this innovative line of credit, instead of your checking account, dramatically reducing the principal balance. Since interest is computed on your daily balance, you start saving interest immediately!

You also pay all of your expenses out of your new line of credit. Until you need the money, it stays in your account, keeping your loan balance lower, saving 5 to 6% in interest costs, versus earning 0% to 2% in your old checking account.

PAY OFF YEARS EARLIER

Paying less interest means that more of your money can go towards paying down the principal, and you pay off sooner. If you’re a borrower who normally saves some money every month, you could pay off an average sized loan in roughly half the time – with no change to spending or saving habits!

INSTANTLY ACCESS YOUR EQUITY

For your everyday expenses, you have unlimited checks, an ATM/Visa® P.O.S. card, and electronic (bill-pay) access to your funds, just like a regular bank account!

HOW DO I KNOW IF IT’S RIGHT FOR ME?

To see how the CMG Home Ownership Accelerator can work with your own unique financial situation, log onto www.cmghome.com , play the 4-minute movie, and then plug your own numbers into the patent-pending simulator to see when you could pay off and how much you could save. You’ll be a believer after that.

Then call me, and let’s discuss how the Home Ownership Accelerator can help you “kiss your mortgage goodbye” sooner.

FIXED-RATE MORTGAGES - A fixed-rate mortgage is the simplest and the most common of all mortgage types. The only difference among fixed-rate mortgages are the length of the term. The most common terms are 30 years, 20 years, and 15 years, with decreasing interest rates the shorter the term. Some features and attributes of fixed-rate mortgages are:

• Monthly payments are constant throughout the life of the loan.
• The mortgage must be paid-off completely at the end of its term.
• Each payment decreases the principal balance of the loan (slowly at first).
• The previous month's interest is paid with the current month's payment.

COMBO LOANS - In a combo loan a first and second mortgage are taken-out simultaneously in order to avoid private mortgage insurance (PMI) or to allow you to buy a home with a smaller down payment. Combo loans are also used to keep your first mortgage under the FNMA/FHLMC limit to avoid Jumbo rates. Some common combo loans are:

• 80/20 - A first mortgage for 80% of the purchase price and a second mortgage for 20% of the purchase price are taken-out at the same time. This version of a combo loan eliminates a down payment.
  
• 80/10/10 - An 80% first mortgage, a 10% second mortgage, and a 10% down payment.
• 80/15/5 - An 80% first mortgage, a 15% second mortgage and a 5% down payment.

100% LTV, ONE LOAN, NO MORTGAGE INSURANCE - Available in fixed-rate, ARM, and interest-only options, this exciting new loan makes it possible to purchase or refinance a home up to 100% loan-to-value ratio (NO DOWN PAYMENT NEEDED) with just one loan and no mortgage insurance. Interest rates are usually only 0.50% higher a conventional loan, which usually results in a monthly payment lower than paying mortgage insurance or doing an 80/20 combo loan to avoid mortgage insurance. The big advantage to this type of loan is three-fold:

• Mortgage interest is tax decuctible, mortgage insurance is not.
• Interest on some second mortgages is not tax deductible.
• Having a second mortgage in place on your home can make it more difficult down the road to get a Home Equity Loan since now you would have three loans on the same property.

INTEREST-ONLY PROGRAMS - In recent years, interest-only programs have become very popular, specifically in non-conforming loans such as jumbo and subprime programs. Interest-only (I/O) programs are designed to offer a lower payment since you are only paying the interest on the loan and nothing toward the principal. An interest-only loan is a great way to increase affordability by reducing the mortgage payment, maximizing investment leverage, or to reduce your mortgage payment and use the additional funds to pay-off debt with a higher interest rate then your home.

The major advantage, is of course, a lower monthly payment. For instance, the principal and interest payment for a loan of $200,000 at 6.25% interest $1,231.43. The interest-only payment is $1,041.67, a savings of $189.76 a month.

Generally these loans will have a fixed-rate, interest-only payment for the first 3, 5, or 10 years and the remainder of the term is fully amortizing.

PAY OPTION ARM – this program offers you the advantages of an adjustable rate mortgage loan combined with flexible payment options and terms. After an introductory period you may select each month, in addition to the required minimum payment, one of three additional payment options:

• Minimum payment amount plus any interest owing for the current month (interest-only payment)
• Fully amortizing (based on 30 or 40-year term)
• Fully amortizing (based on 15-year term)

The Pay Option ARM gives you the choice of a 1 year fixed introductory rate or a 5 year fixed introductory rate. During the introductory period your monthly payment is interest-only based on an interest rate of 1% to 2%.

This type of a loan is great for you if you plan on having increased cash flow within a year, either by income increases or paying-off other debt, your income is going to decrease temporarily (such as a wife staying home for a year with a new baby), or you are purchasing an investment property and wish to leverage the maximum amount of revenue generated from it.

What kind of savings are we talking about? Take for example a $200,000 loan:

• Fully amortizing principal and interest payment at 6.5% interest = $1,264 a month
• Interest only payment at 1% interest = $643 a month

MY COMMUNITY MORTGAGE - The FannieMae MyCommunityMortgage™ is a flexible mortgage for low- and moderate-income borrowers. Key features of this program are:

• No minimum borrower contribution
  
• Up to a 40-year term.
• Options for lower initial monthly payments with a 5-year or 10-year interest-only period.
• Loan-to-value ratios permitted up to 100%.
  
• Cash reserves at closing not required in most cases.
• Part-time and overtime income is considered.

GROWING-PAYMENT MORTGAGES (GPM) - A graduated-payment mortgage is a type of flexible-payment mortgage where the payments start off low, gradually increase at predetermined times, then level off. The difference between a GPM and an ARM is that with a GPM you always know throughout the life of the loan what the payments will be, even though the payments are changing.

GROWING EQUITY MORTGAGES (GEM) - One type of GPM is the growing equity mortgage. In contrast to an adjusstable rate mortgage (ARM), a GEM has a fixed-payment schedule, so the additional principal payments reduce the term of the loan. The monthly payments for the GEM increase annually. The increased amounts are used to directly reduce the principal balance of the loan, thus it is paid-off sooner. With a GEM loan:

• The mortgage starts with a 30-year term, but is frequently paid-off in 15 years.
• The higher payments are delated for future years.

JUMBO LOANS - Offers 30 and 15 year fixed rate mortgage and competitive ARM products with full document, alternate documentation and limited documentation.

Cash out and No cash out refinance are allowable. Single family detached, Condo~Rs, PUD~Rs and single-family second homes can be financed with no prepayment penalty.


EMERGING MARKETS PROGRAM - 0% Down payment required and closing costs can be financed up to 105% of the purchase price. Only single-family homes that will be owner occupied are eligible. First time home buyer status not required and there are no income limits.

ZERO DOWN PROGRAMS - Same as above only the borrower pays for closing costs or can have the seller contribute up to 6% towards closing costs.

FLEX ARM - A Flex ARM is structured in a manner that offers you the flexibility of three payment options. Each month the lender sends you a payment coupon that calculates the three payment options:

• The negative amortization amount
• The interest only amount
• The fully amortized amount

Flex ARM's are particularly attractive if you are self-employed or commissioned and have sporadic or fluctuating income. These options allow you to adjust your monthly payment to match your income fluctuations.


NO DOC/STATED INCOME - Loans where your income is not requested or verified with as little as 10% down are stated income loans. There are several varieties of the "no-doc" loan today. Basically the type of loan that is best suited for a particular borrower depends on that borrower's situation. Some borrowers choose not to disclose employment, income or asset information, while others may be willing to disclose employment and asset information but not income. Still others might be willing to disclose even income but select a program that doesn't calculate debt-to-income ratios allowing those borrowers to exceed the traditional guidelines in order to qualify for a larger mortgage amount. With all the different variations of the no-doc loan, there is definitely a mortgage program for today's non-conventional borrowers.

REVERSE MORTGAGE - Also known as Reverse Annuity Mortgage (RAM), a reverse mortgage enables older homeowners (62+) to convert the equity in their home into tax-free income without having to sell their home, give-up title, or take on a mortgage payment.


FLEX 97 AND 100 - Mortgages with little or no down payment - Are you concerned about not having enough money for a down payment? Or, would you like to set aside some of the money you have saved for move-in expenses? If so, a Flexible 100^TM or Flexible 97^® mortgage might be what it takes to get you into your own home.

With a Flexible 100 mortgage, you don't need to make a down payment and can provide as little as $500 of your own money toward closing costs.

With a Flexible 97 mortgage, you can pay just 3% of your home's purchase price toward your down payment, and this amount can come from sources such as gifts, grants, loans from relatives, nonprofit groups, or employer-assisted housing.


A- THRU D LOANS - These mortgages are for the credit challenged. They can vary from slightly damaged credit to severely damaged. Whatever the situation we have a mortgage that will get you back on track.


HOME EQUITY LOANS (HEL) - A home equity loan gives you the ability to get money for home improvements, debt consolidation, eduction expenses, or many other reasons without disturbing their first mortgage. Interest on second mortgages may be tax deductible. Not to be confused with a HELOC.

HOME EQUITY LINE OF CREDIT (HELOC) - A home equity line of credit is a revolving line of credit using real estate as collateral. The loan amount is based on the amount of equity in your home. When funds are needed you have the option of drawing on the line of credit. HELOC's:

• Operate similar to a credit card.
• Are accessed by checks or drafts.
• Have a floating interest rate.
• Interest in only charged on the outstanding balance.
• The rate is usually charged on the Prime Lending Rate (this differs from a HEL which has a fixed rate).
• Interest may be tax deductible.
• There are HELOC's designed for self-employed individuals with limited or no income documentation.
  

125% 2^nd MORTGAGE - Same as above but the 2^nd mortgage we will lend up to 125% of the value of the home.


HIGH DEBT RATIO LOANS - Borrowers having the ratio of their monthly bills to their monthly income higher than 50% is considered a high debt ratio. Loan programs are available for these borrowers, allowing them to finance the purchase of a home or property.


CONSTRUCTION LOANS - Building a new home can be an exciting prospect - unless you get caught up in a construction loan approval process that's overly complicated and time consuming. With this loan we will finance up to 90% of the cost of land plus the costs of construction. We offer a one time fixed rate closing or the traditional ARM products.


INVESTOR LOANS ~V Used to finance 1-4 family properties that will be for investment with as little as a 10% down payment. Aggressively priced these programs have many variations such as NO DOC, LIMITED DOC and FULL DOC. PROGRAM NOT AVAILABLE IN NEW YORK.

HARD MONEY LOANS - Hard money loans are used to quickly finance investment properties. Hard money loans typically have a repayment period of 1 - 3 months and usually lending fees of 1 - 5 points. These loans are great for investors purchasing a home with built-in equity to turn in a short period of time. Longer terms and less fees can be accomplished by refinancing in a more traditional sense into a loan without title seasoning and pre-pay penalties.

EQUIPMENT LEASING -  If your business needs immediate access to the best equipment money can buy, without constricting cash flow, then leasing is the right tool for you. Lease amounts as low as $5,000 to over $5 million.  The benefits of equipment leasing are:

• Less impact on cash flow.
  You can structure payments to parallel your cash flows. Leasing can be great for seasonal or cyclical businesses that prefer to schedule payments during peak cash flow periods.
  
• Reduced paperwork and approval time.
  Most lease credit decisions can be made within three business hours. Transactions up to $100,000 require completion of only a simple, one-page application.
  
• Conservation of capital and credit.
  Your lines of credit and sources of capital aren't tied up in equipment. Instead, they're available for opportunities such as inventory, marketing, or personnel.
  
• Immediate use of equipment.
  After signing your lease documents, you can contact the vendor to schedule delivery. It's that easy.
  
• Project basis use of equipment.
  By selecting a lease term that closely matches the project's duration, leasing is a good way to acquire the latest equipment without having to keep it when that project is complete. Then, enter another lease on new equipment for the next project. This way you'll always be able to maintain a competitive edge by using the most advanced equipment to serve your clients.
  
• 100% financing - including soft costs.
  In addition to financing 100% of the equipment, you can include "soft" costs such as sales tax, shipping, software, training, maintenance and installation into the lease.
  
• Protection against obsolescence.
  High tech equipment is often obsolete in two-to-four years. You can add upgrades and new equipment by modifying your lease arrangement to keep your company on the leading edge. Plus, if you want to acquire complementary equipment (e.g., adding voice mail to a phone system), you can arrange for both equipment leases to end at the same time. This can prevent staggered leases from making your equipment a confusing combination of new and old. (Subject to credit approval)
  
• Tax benefits.
  For certain leases, you can deduct monthly lease payments as an operating expense. Moreover, leasing may help your business avoid the Alternative Minimum Tax (AMT).
  
• Improved balance sheet ratios.
  Unlike the traditional methods of financing, operating lease obligations generally are not capitalized, improving balance sheet ratios.
  
• Options for purchase or renewal.
  At the end of the lease you may choose to purchase your equipment, upgrade it, or continue to lease it. Or, if you're done with the equipment, return it.
  
• Reduced interest rate risk.
  By locking in fixed payments now, you can avoid the risk of inflation in the future.