Mortgage and Lending Products in Florida

Federated Mortgage Services offers Florida home buyers a variety of mortgage options to meet your real estate finance needs. We work with the leading lenders in the industry to provide:

Jumbo/Super Jumbo loans

Portfolio Super Jumbo Loans

Pledged Assets

Adjustable Rates (3-, 5-, 7-, 10-year)

Fixed-Rate (3-,5-,7-,10-year)

Jumbo (15-,20-,30-year)

Conforming

Interest-only and balloon types

Bridge Financing

Home Equity Line of Credit

Second Mortgages

Vesting title in Entities

Hard Money Wholesale Lending

 

Adjustable Rate Mortgages (ARM):

An adjustable rate mortgage, called an ARM for short, is a mortgage with interest rate that is linked to an economic index. The interest rate, and your payments are periodically adjusted up or down at the index changes. Federated Mortgage Services offers the following adjustable rate mortgage products: – interest only- 3-,5-, 7- and 10-year.

Index: an index is a guide that lenders use to measure interest rate changes. Common indexes used by lenders include activity of one, three, and five-year Treasure securities, but there are many others. Each ARM is linked to a specific index.

Margin: Think of the margin as the lender’s markup. It is an interest rate that represents the lenders cost of doing business plus the profit they will make the loan. The margin is added to the index rate to determine your total interest rate. If usually stays the asme during the life of your home loan.

Adjustment Period: The adjustment period is the period between potential interest rate adjustments. You may see ARM described with figures such as 1-1, 3-1, and 5-1. The first figure in each set refers to the initial period of the loan, during which your interest rate will stay the same as it was on the day you signed your loan papers. The second number is the adjustment period, showing how often adjustments can be made to the rate after the initial period has ended. The examples above are all ARMS with annual adjustments – meaning adjustments could happen every year.

Bridge Financing: A real estate bridge loan is a short-term loan that is taken to meet urgent financial needs. It is also called a hard money loan. Just like a conventional loan, a real estate bridge loan is backed by real property collateral. A real estate bridge loan is obtained as a temporary measure until either permanent financing is secured or the collateral is sold. For more information about Federated Mortgages Services Equity-Based Wholesale lending division, see our Hard Money Wholesale Lending Brochure.

Fixed-Rate Mortgage: 15 year – 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 will own your own 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 yr old 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 isnt that great.

30 Year – 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 move within 7 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.

Home Equity Line of Credit: A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because a home often is a consumer’s most valuable asset, many homeowners use home equity credit line only for major items, such as education, home improvements, or medical bills, and choose not to use them for day-to-day expenses. With a home equity line, you be approved for a specific amount of credit. Many lenders set the credit limit on a home equity line by taking a percentage of the home’s appraised value and subtracting from the balance owed on the existing mortgage. In determining your actual credit limit, the lender will also consider your ability to repay the loan (principal and interest) by looking at your income, debts, and other financial obligations as well as your credit history.

Home equity lines of credit typically involve variable rather than fixed interest rates. The variable rate must be based on a publicly available index. Variable-rate plans secured by a dwelling must, by law, have a ceiling (or cap) on how much your interest rate may increase over the life of the plan. Some variable-rate plans limit how much your payments may increase and how long your interest rate may fall if the index drops.

Many home equity plans set a fixed period during which you can borrow money, such as 10 years. At the end of this draw period you may be allowed to renew the credit line. If your plan does not allow renewals, you will not be able to borrow additional money once the period has ended. Some plans may call for payment in full of any outstanding balance at the end of the period. Other may allow repayment over a fixed period (the repayment period) for example 10 years.

Once approved for a home equity line of credit, you will most likely be able to borrow up to your credit limit whenever you want. Typically, you will use special checks to draw on your line. Under some plans, borrowers can use a credit card or other means to draw on other line.There may be other limitation on how you use the line. Some plans may require your to borrow a minimum amount of each time you draw on the line (For Example, $300) or keep a minimum amount outstanding. Some plans may also require that you take an initial advance when the line is set up.

And Remember, failure to repay the amounts youve borrowed, plus interest, could mean the loss of your home.

Contact Todd Campbell at 954-561-1000 to learn more about the services and products offered by Federated Mortgage Services