Fixed Rate Mortgages

With fixed rate mortgages, the interest rate remains unchanged for the life of the loan. This means that the monthly loan payment never increases, regardless of inflation. A fixed rate mortgage loan offers some stability, because you know exactly what your loan payment will be each month. Like other mortgages, these programs also offer considerable tax benefits because the interest paid is typically tax deductible.

East Coast Funding offers several types of fixed rate mortgages:

	30 Year Fixed Rate Conforming - With this mortgage, monthly payments are made over a 30-year period. The maximum loan amount for this type of mortgage is $333,700.
	30 Year Fixed Rate Jumbo - This mortgage is similar to the regular fixed rate mortgage except the loan amount exceeds $333,700. Because of the higher loan amount, interest rates also tend to be higher.
	30 Year Fixed Rate FHA - Repayment of this loan is guaranteed by the Federal Housing Administration, which is a federally sponsored agency. This allows lenders to provide loans with low down payments and slightly better interest rates for moderate income families. However, there are lower limits on the amount of money that can be borrowed.
	15 Year Fixed Conforming - This mortgage is similar to the 30 year conforming, except monthly payments are made over a 15 year period. As compared to a 30 year mortgage, monthly payments are higher, but the mortgage is paid off much more quickly
	15 Year Fixed Rate Jumbo - This mortgage is similar to the 30 year jumbo, except monthly payments are made over a 15 year period. As compared to a 30 year mortgage, monthly payments are higher, but the mortgage is paid off much more quickly

Adjustable Rate Mortgages (ARMs)

With ARMs, the interest rate changes over time according to terms specified in advance.

The initial interest rate is usually lower than that offered with a fixed rate mortgage, so payments in the early years of the loan tend to be relatively low. The lower initial rate of an ARM can leverage your purchasing power and enable you to purchase a more expensive home than may be possible with a fixed rate mortgage.

At a predetermined time, the interest rate will be adjusted either up or down, causing monthly payment amounts to change (and possibly increase) as well. Many adjustable rate mortgage programs offer the protection of a "rate cap," which limits the amount the rate can be increased each year.

East Coast Funding offers several different types of adjustable mortgages:

	1 Year Conforming ARM - With this mortgage, the mortgage loan interest rate adjusts once each year. The new rate is calculated each year by adding 2.75 percent to the 1 year Treasury Bill rate. Each year, the mortgage loan interest rate may go up or down by no more than 2 percent, and by no more than 6 percent over the life of the loan. The maximum loan amount for this type of mortgage is $333,700.
	1 Year Jumbo ARM - This mortgage is similar to the 1 year ARM, except that the loan amount exceeds $333,700.
	1 Year FHA ARM - Repayment of this loan is guaranteed by the Federal Housing Administration, which is a federally sponsored agency. Because the loan is also a 1 year adjustable rate mortgage, this means the mortgage interest rate adjusts once each year. (The new rate is calculated each year by adding 2.75 percent to the 1 year Treasury Bill rate.) Each year the interest rate may go up or down by no more than two percent, and by no more than six percent over the life of the loan. An FHA loan allows lenders to provide loans with low down payments and slightly better income rates for moderated-income families.
	3/1 Conforming ARM - With this mortgage, the interest rate is fixed for three years and then becomes a 1 year adjustable rate mortgage. The new interest rate is calculated by adding 2.75 percent to the 1 year Treasury Bill rate. The interest rate may go up or down by no more than 2 percent and no more than 6 percent for the remaining life of the loan. The maximum loan amount for a 3/1 Conforming ARM is $333,700.
	3/1 Jumbo ARM - This mortgage is similar to the 3/1 ARM, except that the loan amount exceeds $333,7000.