Distinctive Home Lending has fixed rate products available for conforming and jumbo loans (over $417,000 as of 12/2005). These loan products range in length from 5 to 30 years. The longer the term of the loan the lower the monthly payment will be.

A fixed mortgage is a type of mortgage loan that is repaid by the borrower making equal monthly principal and interest payments over a specified period (30, 20, 15, 10 & 5 years), regardless of fluctuations in the market, the payment remains the same throughout the duration of the loan. Fixed-rate loans are the traditional choice of homebuyers who plan to stay in their home for many years, and wish to build equity, by reducing their principal balance.

30 Year Fixed

A 30 year fixed mortgage is a type of mortgage loan that is repaid by the borrower making 360 equal monthly principal and interest payments over a period of 30 years. A 30 year mortgage loan is the most widely accepted program used to finance a residential purchase, and is available for conventional, FHA, VA and jumbo loans.

15 Year Fixed

A 15 year fixed mortgage is a type of mortgage loan that is repaid by the borrower making 180 equal monthly principal and interest payments over a period of 15 years. 15 year mortgages are available for conventional, FHA, VA and jumbo loans. Naturally, the amount of interest paid on a 15 year loan is significantly less.

5, 10 & 20 Year Fixed

Generally less commonly used than the 30 and 15 year programs but offers the borrower additional choices dependent upon their financial goals. With these shorter terms, the borrower builds equity in the home more quickly than with longer loan terms.

Distinctive Home Lending offers interest only products that will leave room in a borrower’s budget for investments and expenses. With an interest only mortgage, the payment covers interest only with no principal reduction for a designated period of time. When the interest only period ends, the payment is adjusted to include principal and interest in an amount that will fully amortize the loan over the remaining years of the mortgage. Payments will be lower during the interest only period and will increase once that period is over. You are always able to make additional principal payments at any time.

Distinctive Home Lending has adjustable rate products available for conforming and jumbo (over $417,000 as of 12/2005) loan products ranging in length from 1 month to 10 years.

An Adjustable Rate Mortgage (ARM) is a mortgage loan that is most widely known for the initial starting interest rate (when compared to the 30 & 15 year mortgage loans). This 'low' introductory rate is used to calculate the mortgage payment for a specified period of time. After this fixed-rate introductory period, the rate is re-set periodically to keep in line with current market interest rates.

The adjustable interest rate is set by combining a margin with an index. When the interest rate goes up, your monthly payment also increases. The most commonly used indices are the yield on the one-year U.S. Treasury Bill, COFI, LIBOR and MTA. The new interest rate is determined by adding the selected indices to a set margin (which is determined by the lender). There is a periodic rate cap and a lifetime cap to limit the amount the rate can increase each adjustment period and over the term of the loan.

The available Adjustable Rate Programs are:

• Option ARMS (The Option ARM offers cash flow options for investors, commissioned and self employed borrowers.)
• 1 month, 3 month, and 6 month ARMs
• 1 year ARM
• 3-1 ARM
• 5-1 ARM
• 7-1 ARM
• 10-1 ARM

These products are available on principal and interest payments and interest only payments.

Distinctive Home Lending offers Balloon Mortgage products for conforming loan amounts.

A balloon mortgage loan is a type of mortgage loan that has a short term (typically 5 or 7 years), with the monthly payment being computed using a 30 year term. When a borrower utilizes a balloon loan, he/she will make the monthly payment for the scheduled loan term (5 or 7 years). Most balloon mortgage products have a conversion option at the end of their term.

For example, a 7/23 balloon mortgage gives the borrower the option to convert to a fixed rate program (for a nominal fee) after the initial term (7 years) is over. If the conversion feature is used, the interest rate for the remaining term of the loan (23 years) will be adjusted once to reflect market conditions, and then remain fixed for the remainder of the loan term.

No Private Mortgage Insurance

Distinctive Home Lending offers purchase money second mortgages that allow you to purchase a home with less than a twenty percent investment while eliminating the additional expense of Private Mortgage Insurance.

A purchase money second mortgage can be a fixed rate mortgage or a variable line of credit. Your loan officer will assist you with the choice that is best for your financial objective.

Home Equity Loans: Fixed Rate Second Mortgages

A closed-end second mortgage can help the borrower use the equity in their home to better manage their debt. The interest rate is fixed and the amount of the loan is determined at application. Typically a home equity loan is used to consolidate high interest rate debts into one low monthly payment. The borrower receives the funds in one lump sum and the payment remains the same throughout the life of the loan.

Home Equity Line of Credit: HELOC

A line of credit is a designated amount of money that is secured by the equity a borrower has in their home. The funds are accessed by writing a check, or using a designated credit card. The borrower “draws down” on the line and only makes payments based on the amount of money that is borrowed. The money is borrowed only as needed, and can be repaid and borrowed again, as needed. Typically lines of credit have lower interest rates than credit cards, but the rates vary monthly depending on the index used to set your rate.

Distinctive Home Lending offers 100% financing to qualified borrowers. No down payment is required. Typically this is an option for borrowers who meet the requirements for both a conventional 80% mortgage and a home equity loan or line of credit for 20% of the purchase price. This type of financing may be necessary when a borrower must close on their new home before selling their current home, or when liquidating other assets for a down payment is not desired. This type of financing requires excellent credit scores for first time homebuyers, buyers with limited resources and newly employed workers.

Distinctive Home Lending offers and provides counseling on other mortgage products, including:

• Non-Warrantable Condominiums
• Stated Income loans
• No Income and no asset verification loans
• Portfolio Products – “fix and flip” loans
• Construction to Permanent Mortgages
• Investment and cash flow mortgages