Licensed Mortgage Banker in PA and NJ

What's The Right Loan For Me?

Not too many years ago, you couldn't even ask this question. All loans were fixed rate, and carried a fixed monthly payment that lasted for a certain number of years. Today you have a wide range of loans to choose from. Federated Lending Corporation (FLC) has one of the most extensive product lines in the industry.

5/25 Balloon Mortgage

30 Year Amortization
Rate is fixed for five year then adjusts one time based on the 60 day FNMA bond rate plus .625%.

 

Loan Range: $100,000 to $417,000
Minimum LTV: Purchase: 80% Refinance: 80% Cash-Out: Varies
Program Strengths: Low rate with 5 year fixed rate security. Great program for borrower planning on paying off loan or relocating in five years or less. Program can have extremely low rates with modest point buy-down.
Program Drawbacks: Five years fixed may not be enough to give one "peace of mind".
Recommendations: Great program for borrowers (Jumbo especially) who want added security of a longer fixed rate term but still want to save money over a 30 year.