- Fixed or ARM's
– a smart option to consider and our most popular term -
- ARM's as 3 year, 5 year, 7 year, or today our most popular term 10 year fixed/ARM payment.
This means that the initial term rate will not change before the set term period for the interest rate adjustment. In most instances over the past 9 years borrowers have enjoyed a reduction in rate and payment making the Fixed/ARM option a real winner.
At the end of the fixed period, the interest rate adjusts annually until the loan is paid in full after 30 years. Fixed-period ARMs are typically tied to the LIBOR securities index which has averaged over the past 48 months at .726 and this index is simply added to the low program margin of 2.250. In this example the new rate at the adjustment period would be only 2.976% (rounded to 3.000%) for the next 12 months.
The advantage of these loans is that the interest rate is lower than for a 30-year fixed (the lender is not locked in for as long so their risk is lower and they can charge less), but you still get the advantage of a fixed rate for a period of time.
- Balloon Loan – Not allowed under our Doctor Loan Program
Balloon Loans offer a fixed rate for a specified time period, typically 5 or 7 years, and then adjust to the current market rate. After the adjustment the mortgage stays at the new fixed rate for the remainder of the loan period.
- Graduated Payment ARMs – Not allowed under our Docotr Loan Program
Graduated payment mortgages initially offer lower payments at the start of the loan that gradually increase at preset times. Lower initial payments allow borrowers to qualify for a larger loan amount. Loan amounts negatively amortize during the early years of the loan then pay off the principal at an accelerated rate through the later years.
GPM payment plans will vary by rate of payment increases and number of years over which payments will increase. The greater the rate of increase, or the longer the period of increase, the lower the initial mortgage payments.
- Rate – Buydown Mortgage Option
This is offered and is simply permanent buydown of the rate that offers a lower interest rate for the full term, and lower monthly payments. In order to reduce monthly payments borrowers make an initial lump sum referred to as "points" payment at closing. These points are 100% tax deductible so most of our Doctor clients will write-off 35% or more of this expense.
The Doctor Loan – offered in the following States
Presently lending 100% financing in Alabama, Florida, Georgia, Tennessee, South Carolina, North Carolina, West Virginia, Kentucky, Missouri, Wisconsin, Michigan, Indiana, Ohio, Illinois, Pennsylvania, Texas, Colorado and Virginia.
Please complete the simple Quick Approval featured on our Home Page of this web site so we can place one of our Senior Mortgage Officer's in touch with you within 1 hour!
Doctor Mortgage Alliance has received high rankings for our ability to ensure that Doctor's receive only the very best in terms including low rates, low fees and outstanding customer service.
Thank you for considering Doctor Mortgage Alliance!