Loan Programs

There are many loan programs available - too numerous to cover them all, we've highlighted the programs more commonly offered today. Characteristics of each loan program are unique, so consult your mortgage professional for more information and to become familiar with the details of the programs available to you.

To help determine the best loan program for you, consider the following:

How important is payment certainty? If knowing that your payment will be the same every month is important, consider a fixed-rate mortgage.

How important is rapid equity buildup? If rapid equity buildup is a factor, consider a shorter amortization period, such as a 15-year, fixed-rate mortgage.

Do you anticipate increasing or stable income? If income growth is anticipated, you could take advantage of a lower start rate on an ARM or a temporary buydown.

Other factors to consider include:

ability to qualify at market rates for loan amount selected
anticipated term of occupancy
possibility of significant rate changes
existence of up-front costs

Loan Programs

Characteristics

15- and 30-Year Fixed-Rate Mortgages

Interest rate does not change.
Principal and interest (P & I) does not change.
Fixed-rate mortgages fully amortize over a defined period of time and are paid in-full at the end of the loan term.
Different loan terms are available (15- and 30-year terms are most popular).
The shorter the term, the faster equity is built and the loan is paid off.

Fixed-Rate Balloons

P & I payment and interest rate do not change.
Regular monthly P & I payments are based on 30-year amortization, while the unpaid balance (balloon) is due at the end of a shorter, predetermined term, typically 5, 7 or 10 years.
Interest rate is typically less than fixed-rate loans.
Most borrowers anticipate refinancing or selling prior to the end of the balloon term.

Fixed-Rate with Temporary Buydown

Borrowers or the seller may pay to temporarily "buy down," or lower, the interest rate.
Decreased interest rate reduces the monthly payment.
Lower interest rate may help borrowers qualify more easily; qualifying factors may vary.
Interest rate/payment is typically reduced for 1, 2 or 3 years

Interest-Only Mortgages

There are no reductions to the principal amount.
There is no provision for negative amortization.
Payments may increase up to an amortized amount, but the loan balance itself does not increase.
Generally, interest-only payments are limited to the first 5, 10 or 15 years of the loan.
After that, the loan is amortized for the remainder of its term

Adjustable-Rate Mortgages (ARMs)

There is potential for the interest rate/ payment to fluctuate.
ARMs transfer to borrowers a portion of the risk associated with a changing economy.
In exchange for sharing the risk, ARMs offer borrowers initial interest rates that are substantially lower than fixed-rate mortgages.
The lower interest rate may help borrowers qualify more easily; qualifying factors may vary.

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Indian Head Modular Homes
1295 Stafford Road
Tiverton, RI 02878
Office 401.625.1217 Fax: 866.462.2409

Toll Free: 866.731.6529

Indian Head Modular Homes is a premier New Era Representative. As a general contractor we are able to build custom homes in less time with a higher degree of quality. Our office is at 1295 Stafford Rd., Tiverton, RI, but we build thought out New England. Whether your plans include Capes, Colonial, Ranches, or Custom homes, we can handle it., New Era Manufactured homes are a far cry from the mobile homes in the past. In fact they are view by the banks and our government to be better than a stick built home. Built in a factory under controlled conditions, lets us build a better quality home in less time and still save money too. Please don’t forget we build commercial buildings as well. Our Awashonks office will help find a lot or a larger piece of land to build your dream home, and if you need to sell your home they can help you with that as well. They are license in both RI. and MA., and have partners covering all of New England if needed.

All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) shall be responsible or liable for any typographical errors, mapping errors, misinformation or misprints.

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