Fixed-Rate vs. Adjustable-Rate Mortgage Loans
Fixed-Rate Mortgage Loans
A fixed-rate mortgage offers a consistent interest rate and a consistent monthly payment that never changes over the duration of the loan.
Fixed-rate loans are typically amortized over a 30-year or 15-year period, but loan terms can be customized for your unique situation.
While smaller-term loans (15 years or less) have a lower interest rate and enable you to own your home sooner, they require higher monthly payments. Borrowers may opt for a longer-term loan and voluntarily make larger payments when possible.
Adjustable-Rate Mortgage (ARM)
Unlike fixed-rate mortgages that have a consistent interest rate throughout the life of the loan, the interest rate on an ARM will change periodically.
The initial interest rate of an ARM is lower than that of a fixed-rate mortgage, consequently, an ARM maybe a good option if you plan to own your home for only a few years, or if you expect an increase in your future earnings, or the prevailing interest rate for a fixed mortgage is too high.
Loan terms such as 3/1, 5/1, 5/5, 7/1, & 10/1 specifies the period when your interest rate is fixed (first number), and how often the rate of interest will change, thereafter (second number).
Allow us to help you make sense of your choices “Book a Complementary Consult Here”
The Fixed-Rate and Adjustable-Rate Mortgage Loan Process
Here’s how our home loan process works:
- Complete our simple Mortgage Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Schedule a Call to learn more
Do I Qualify?
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.
- Fixed-Rate Mortgage
- Conforming Loans
- Jumbo & Super Jumbo Loans
- FHA, VA & USDA Loans
Down Payment Assistance
About Downpayment Assistance
Are you worried that you can’t afford a down payment on a home? Here’s some good news: If you’re a first-time home buyer, you might qualify for down payment assistance provided through a government agency or a private organization.
There are also a few select repeat homebuyer programs—reach out to learn more about those options.
What Is Down Payment Assistance (DPA)?
As the name suggests, down payment assistance helps you cover your down payment, particularly as a first-time home buyer.
When you buy a home, you’ll usually have to put money down that’s equal to a percentage of your home’s final purchase price—that amount is your down payment. The amount you’ll need will vary.
There are many types of payment assistance (DPA) programs, which include:
Grants: Gifted funds that never have to be repaid
Loans: A second mortgage that is paid monthly along with a first mortgage
Deferred Loans: Second mortgages with deferred payments until you move, sell your home, or refinance your loan.
Forgivable Loans: Second mortgages that are forgiven over a specified period of time (usually between 5-20 years), which may be repaid if you move, sell, or refinance too early.
TPG Mortgage is certified to assist you with the following DPA programs:
- (California Housing Finance Agency (CalHFA) – our most popular program. Statewide, this California program helps with Down Payment and Closing Cost Assistance. They JUST introduced a Forgivable Equity Builder Loan!
- HCIDA – LIPA/MIPA Program – this City of Los Angeles Program helps Low-to-Moderate Income Families with Down Payment Assistance.
- LACDA HOP Program – County of Los Angeles Program helps Low Income Families with Down Payment Assistance.
- Golden State Finance Authority (GSFA) – Statewide California program, helps First Time & Repeat Buyers with Assistance, including First Responder Programs.
- Chenoa– Nationwide Program that helps Families with Down Payment Assistance
- Trio – Lease-to-Own Program – offering innovative, affordable, and sustainable homeownership solutions.
- We also assist with matching Buyers to Community Revitalization Act Programs (CRA) – offered by several Lending Institutions throughout SoCal.
- We can recommend Incentives and Specials available for those working in Health Care, Public Safety, and Education
Note: each program comes with its own qualifications and restrictions. Also, as new programs become available this list be subject will be updated.
Here’s how our Down Payment Assistance process works:
- Complete the My Application Form
- Receive options based on your unique criteria and scenario
- Schedule a Call to learn more!
Who Qualifies As A First-Time Home Buyer?
Most government and charity programs have strict definitions for who qualifies as a first-time home buyer. If you haven’t had any kind of homeownership in the last 3 years, most state, federal and nonprofit programs consider you a first-time buyer, even if you’d owned a home before that 3-year period.
FHA Loans
About FHA Home Loans
An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). Essentially, the federal government insures loans for FHA-approved lenders to reduce the risk of loss if a borrower defaults on their mortgage payments.
The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s, to provide mortgage lenders with adequate insurance, and to help stimulate the housing market by making loans accessible and affordable.
The FHA Loan Process
- Complete our simple FHA Loan Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Schedule a Call to learn more!
Why an FHA Loan?
Loans provided by the Federal Housing Administration (FHA) may make it easier for you to buy a home. For an FHA loan, a down payment of 3.5% is required. Borrowers who cannot afford a traditional down payment of 20% or are unable to receive approval for private mortgage insurance may consider an FHA loan.
- More Forgiving Credit Score Criteria
- Homes Must Meet Safety Structure Requirements
- 3.5% Down Payments
- Fixed-Rate Mortgage – loan terms may be flexible
- Adjustable-Rate Mortgage (ARM)
- Jumbo Loans (higher rate limits in states including Alaska, California, Hawaii, Guam, and the U.S. Virgin Islands)
We’ll help you recognize the differences between loan programs so you can choose the right one for you whether you’re a first-time home buyer or a repeat buyer.
VA Loans
About VA Home Loans
A VA loan is a mortgage loan that is guaranteed by the U.S. government, Department of Veterans Affairs (VA). The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry). The loan may be issued by qualified lenders.
We’re here to make the VA home loan process easier, with tools and knowledge that will help guide you along the way, starting with our VA Loan Qualifier.
We’ll help you evaluate the differences between loan programs, allowing you to choose the right loan whether you’re a first-time home buyer or a repeat buyer.
The VA Loan Process
- Complete our simple VA Loan Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Schedule a Call to learn more! (link to calendar)
Why a VA Loan?
If you’re a military veteran or still in active service, you may qualify for a U.S. Department of Veterans Affairs (VA) loan. These often require no down payment and have lower closing costs, which can help keep your savings secure.
- Low Down Payments
- Fixed-Rate Mortgage (terms of 15, 20, 25, 30-year or other customized loan terms)
- Adjustable-Rate Mortgage (ARM)
- Jumbo Loans
Jumbo Loans
About Jumbo Home Loans
A jumbo loan is a loan that exceeds the conforming loan limits as set by Fannie Mae and Freddie Mac for most of the U.S., apart from Alaska, California, Hawaii, Guam, and the U.S. Virgin Islands where the limits are higher. Rates tend to be higher on jumbo loans because lenders have a higher rate of risk.
When a buyer is ready to increase their investment portfolio, we collaborate with the entire financial team to evaluate options and ensure the jumbo home loan process is streamlined and easy.
The Jumbo Loan Process
- Complete our simple Jumbo Loan Qualifier
- Receive options based on the buyer’s unique criteria and scenario
- Compare mortgage interest rates and terms
- Schedule a Call to learn more!
Why a Jumbo Loan?
There are many benefits to jumbo loans. One of the biggest benefits is that financing options are available for up to $5,000,000, which may provide convenience to many borrowers.
- Fixed-Rate Mortgage (terms ranging from 5 to 30 years including customizable terms)
- Adjustable-Rate Mortgage (ARM)
- Jumbo & Super Jumbo Loans
- Interest-Only Loans
Renovation Loans
About Renovation Home Loans
Renovation loans give you more homebuying options by making it possible to buy fixer-uppers and do property repairs immediately. These loans may pay for structural repairs, cosmetic renovations, and in-between improvements.
There are two types of renovation mortgages:
- FHA 203(k) loans are mortgages insured by the Federal Housing Administration.
- HomeStyle loans are mortgages guaranteed by Fannie Mae.
Both renovation loans share many similarities including:
- Each allows you to buy and renovate a home immediately with one mortgage.
- Renovation funds are set aside in an escrow account that is managed by the Lender.
- Contractors are vetted to ensure they are licensed, bonded, insured, and can adhere to program requirements. They are paid in draws each time they hit project milestones.
- Minimum required down payments are based on either the total cost of the purchase plus renovations or the expected appraised value of the home after the work is completed. Each loan uses a formula to decide which to use.
The Renovation Loan Process
- Complete our simple Renovation Loan Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Schedule a Call to learn more!
Why a Renovation Loan?
The main benefit of a renovation loan is the ability to buy a home in need of repairs that you might not otherwise have been able to afford. Plus, the down payment requirements are minimal, and often you can receive a favorable interest rate.
- Fixed-Rate Mortgage (terms of 15, 20, 30, or other customized loan terms)
- Minimal Down Payments
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License In: CA | NMLS # 1085598