Mortgage Loan Types

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Find The Loan That Fits Your Financial Needs

As an independent mortgage lender, Apex provides a versatile range of loan options. Our Mortgage Bankers can accommodate borrowers within a wide range of credit and income backgrounds. They work tirelessly to find and structure a home loan tailor-made to fit each borrower’s diverse needs. Whether you’re a first-time buyer, a seasoned buyer looking for a change of scenery, or a current homeowner interested in refinancing, Apex's expertise may be the solution you are looking for.

Home loan basics: ‘types’ vs. ‘programs’

Mortgage types can be broken down into three loan categories:

Conforming/Conventional

A loan that meets underwriting requirements set forth by a Government-Sponsored Enterprise (GSE).

Non-Conforming/Jumbo

A loan that does not meet GSE requirements, often due to the loan amount. Jumbo loans are frequently non-conforming.

Government

A loan that is guaranteed by a Governmental entity. FHA loans and VA loans are the most common of this loan type.

Mortgage programs are the defined repayment conditions of your loan. The mortgage program you choose designates the length your loan, the interest rate of your loan, and determines the amount of your down payment.

Which mortgage program is best for me?

Finding the best loan program for your situation depends on several factors. Your current financial standing, how long you plan to remain in your home, and your financial goals all must be considered when choosing a repayment plan. For these reasons, it is necessary to consult with a Mortgage Banker who can take every consideration into account in order to choose the right loan. In the meantime, evaluate your options by learning about the main mortgage programs that follow. 

Fixed-Rate loans are locked at a specific interest rate for the life of the loan. Your monthly payments will always be the same. For this reason, they are inflation-proof. If mortgage rates rise in the years following your loan approval, you’re protected. On the other hand, if rates decrease or taxes increase, you are committed to paying a higher amount for the life of your loan. 

Adjustable Rate Mortgages (ARMs) initially have lower interest rates than fixed-rate loans. With ARMs, the rate will change, or adjust, once your loan term reaches a designated length. Due to this change, your payments may increase over time, requiring you to be financially prepared when that happens. A lower interest rate at the beginning of an ARM makes this loan program an attractive choice for borrowers who do not plan to remain in their mortgage for very long. 

Government-backed loan options offer attractive benefits

There are several loan programs that are sponsored or insured by state and federal institutions. State programs frequently offer benefits such as income-based down payment assistance through deferred loans, limited lending fees, and reduced interest via subsidized costs. These benefits are especially attractive for first-time homebuyers. Contact an Apex representative for specifics regarding your state’s offerings, or visit your state’s housing department website for details.

Federal and organizations such as the Federal Housing Administration (FHA), Department of Veterans Affairs (VA), and United States Department of Agriculture (USDA) offer structured loan programs to make homeownership more accessible.

FHA Loans are mortgages that are insured by the Federal Housing Administration. In addition to offering attractive interest rates, FHA loans may have less stringent credit and can be obtained with low down payments.

VA Loans are available to veterans of armed services, soldiers on active duty, or National Guard members. VA loans offer 100% financing (no money down) for purchase transactions below a specific loan amount. VA loans also allow borrowers to avoid Private Mortgage Insurance (PMI). These loans are available to veterans interested in purchasing a property or refinancing to reduce interest.

USDA / Rural Housing Loans are availabe to eligible homebuyers purchasing a home in a qualified rural areas. Some advantages of these programs include no-money-down, 100% financing and lower-than-average interest rates.   

You’ve built equity, now leverage it!

Apex offers Home Equity Loans & Home Equity Lines of Credit (HELOC) to homeowners looking for ways to take advantage of rising property values & tax-deductible interest.  Apex provides these services to customers who take out a new first purchase or refinance mortgage with us. A Home Equity Loan allows a homeowner to borrow against the equity they’ve acquired in their home to gain a lump sum cash amount that can be used for a large expense. The loan is then repaid at a low, fixed interest rate. For equity loans under $100,000, interest is tax deductible.* Home equity loans can make financial sense to homeowners needing capital for:

  • Debt consolidation
  • Home remodeling
  • Business expansion
  • Medical expenses

A HELOC allows a homeowner to borrow a limited sum within an established period of time, and then repay that amount, much like a credit card. However, HELOCs offer interest rates that are lower than credit cards, as well as the possibility of tax-deductible annual payments. These lines of credit may make sense for homeowners who require:

  • The ability to borrow against your home equity with low interest rates
  • Emergency cash reserves
  • A low-interest, low-cost way to invest or cover a large expense

Refinancing solutions tailored to your needs

Partner with Apex to make an informed decision about refinancing. We consult with our clients to put them in the best possible financial situation with the lowest overall cost. Our refinancing services may allow clients to achieve:

  • Lower monthly payments
  • Consolidated debt
  • Home enhancements and renovations
  • Adjustable to fixed rate loan conversions
  • Greater financial stability
*Contact your tax adviser when it comes to mortgage interest deductibility.

Related Resources:

Fixed Rate or Adjustable? 5 Questions to Help You Decide.
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