MORTGAGE LOAN TYPES
30-yearFixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within
seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that
much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
20-yearFixed Rate Mortgage
The traditional 20-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within
seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that
much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is
that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than
committing to a higher monthly payment, since the difference in interest rates isn't that great.
10-Year Fixed Rate Mortgage
This loan is fully amortized over a 10-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is
that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than
committing to a higher monthly payment, since the difference in interest rates isn't that great.
Hybrid ARM (5/1 ARM, 7/1 ARM, 10/1 ARM)
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1
loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to
move (or refinance) before or shortly after the adjustment occurs.
The FHA 203k renovation loan program provides funds for both the purchase and renovation of a home packaged into one mortgage loan. Once the purchase of the home is closed, renovation funds are held in escrow to pay for pre-determined renovation work done by approved renovation contractors. These loans are offered as 30 year fixed, 15 year fixed and 5/1 arms.
In an effort to help home owners create the home of their dreams, Fannie Mae has introduced the HomeStyle Renovation loan. The HomeStyle loan is Fannie’s version of a construction loan, with flexible down payment requirements and lending guidelines. HomeStyle can help you renovate your current or existing home. Like 203k loand the can be used for purchasing or refinancing a home as your primary residence, the HomeStyle loan allows for: single family homes, condos, co-ops, PUDs and up to a four-unit multi-family home. Second homes and investment properties are limited to the purchase or refinance of single units which include: single family homes, condo units, co-ops and PUDs – no multi-family homes are allowed.
RAF Investment Services is very knowledgeable and experienced in Construction Lending.
Commercial Retail and Office Space
Commercial real estate (CRE) is income-producing real estate that is used solely for business purposes, such as retail centers, office complexes, hotels and apartments. Financing – including the acquisition, development and construction of these properties – is typically accomplished through commercial real estate loans: mortgage loans secured by liens on commercial, rather than residential, property.
Banks and independent lenders are actively involved in making loans on commercial real estate. In addition, insurance companies, pension funds, private investors and other capital sources, including the U.S. Small Business Administration which also makes loans for commercial real estate.
Commercial loan programs are very different from Residential programs and dealing with and experienced company is very important. RAF Investment Services has been in the business of commercial loans since our inception in 1984.
Construction
Construction lending for fix and flips are considered a business loan or commercial loan. We have a number of options from lines of creidt to project funding.
Small Business Administration
RAF Investment Services has over 30 years of combined SBA experience. We do both 7A and 504 SBA loan types to offer clients loans for business purchases with or without Real Estate. We also can provide SBA lending for working capital and business expansion. Through the SBA RAF Investment Services also offers lending for buildout of both new and existing business property. These are considered Tenant improvements and the borrower does not have to own the Real Estate involved.
RAF is very knowledgeable and experience in Commerical, Construction and SBA lending.
Thes are any loan where the balance is above the Fannie Mae or Freddie Mac Loan limits for the county the property is located.
30-yearFixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within
seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not
that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage
is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer
than committing to a higher monthly payment, since the difference in interest rates isn't that great.
Hybrid ARM (5/1 ARM, 7/1 ARM, 10/1 ARM)
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example,
a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who
expect to move (or refinance) before or shortly after the adjustment occurs.