Bridgeview Mortgage Co Inc offers a variety of loan programs to meet your needs. We work with the leading lenders in the industry to provide:

Fixed Rate Mortgage
 
Offers consistent monthly payments.  With a fixed rate mortgage, the interest rate and principal & interest payment never change for the entire term of the loan.  More predictable…easier to budget.
 
Fixed Rate mortgages are a better choice if:

     •         You think interest rates could rise in the next few years.
     •         Plan to stay in the home for a long time
     •         Prefer the stability of fixed mortgage note payments compare to the periodic payments that will occur with an adjustable rate mortgage.
 
The longer the term of the mortgage, the higher the interest rate will be and the more interest costs you will incur.  However, the longer the term, the lower the payment, so depending on what you can comfortably afford for a monthly payment, a 30 year fixed rate loan might be better for your budget.
 
So, the shorter the term of the mortgage, your rate will be lower and you will pay less interest costs over the term of the loan and you will build equity in your home faster.
 
Fixed rate mortgage loans are available in a variety of repayment terms.  Generally the terms offered are 30, 20, 15 and 10 years. 
 
In addition, there are fixed-rate, interest-only mortgages that begin with lower interest-only payments for a fixed period of time.  This is typically the first 10 years.  Then the mortgage reverts to a fully amortizing payment over the remaining term of the loan.   While you are paying interest only, your payments are not building any home equity.  Your original loan amount remains the same for the entire interest only period.  At the end of the interest only period when your loan reverts to a fully amortizing loan for the remaining term, your payments will increase significantly.
 
Interest-only loans tend to appeal to people whose income fluctuates (self-employed, commissioned or bonus) or if you expect to own your home for a short period of time.
 
These loans are based on “conventional” loan limits.  The maximum loan amounts are based on the number of units in the property.  Currently the following are the conventional loan limits.
 
       Single Family or Condominium     $ 417,000
       Two Family Property                   $ 533,850
       Three Family Property                $ 645,300
       Four Family Property                  $ 801,950
 
If your mortgage will be for an amount higher than these conventional limits, a “jumbo” mortgage may be an option.  Jumbo loans are available in a variety of terms.  Jumbo home loans will have a higher interest rate and different terms due to different underwriting requirements.
 
Adjustable Rate Mortgage
 
Adjustable rate mortgage (ARM) loans provide a low interest rate for an initial payment period, making the initial monthly payments less than those of a fixed-rate mortgage.  After the lower initial rate period, the ARM loan’s interest rate and payment will change, so you will want to be financially prepared to make possibly higher payments.
 
ARM loans are available for a 30 year term with different options for how long the initial interest rate will last before the rate can start to adjust.   For example you could get a 7/1 ARM, and your interest rate and payment would stay the same for the first seven years before being subject to annual adjustments. 
 
If you want to consider an ARM you need to know how and when your rate will be subject to change, because those factors will determine how much your monthly payment will change.
 
In determining if an ARM is best for you, there are factors other than the interest rate that you need to consider.  The following factors are crucial to make that determination.
 
     •         Term – how long will the initial interest rate be locked for before the loan will be subject to adjustment.
     •         Margin – what is the margin being offered on the loan.  The margin is crucial, because it is added to the index value in effect at the time your rate adjusts that determines your new rate and payment.  The lower the margin, the smaller the future rate adjustments.
     •         Index – what is the specific index that will be used in calculating future adjustments.  You would want to have an index that is relatively stable.  The two most common index values that are used are Treasury-Indexed ARMS (T-Bills) and the London Interbank Offered Rate ARMs (LIBOR)
     •         Fully Indexed Rate – this rate is the sum of the index value in effect when your loan adjusts  plus the margin.  This total (rounded to the nearest .125%) establishes your new interest rate that will be in effect until your next adjustment period.  However this rate increase (or decrease) will be limited by your ARM loan caps.
     •         Caps – these set limits on how much your rate will increase (or decrease) during the term of the loan.  These are typically quoted in a series of three numbers, such as 5/2/5.  The first number indicates the maximum increase or decrease in your rate at the end of the initial rate period.  So in this example, the maximum rate change would be 5% from your initial interest rate.    The second number indicates the maximum interest rate change on all subsequent rate changes.  So for each adjustment after the initial one, the maximum rate change would be 2%.  The last number indicates the maximum interest rate change over the life of the loan.  So, in this example, your rate would never increase or decrease more than 5% from your initial interest rate at any time over the life of the loan.
 
Adjustable-Rate Mortgages are a better choice if:
 
     •         You are planning to move or payoff your loan within a few years and will not be concerned about possible future rate increases.
     •         You expect your income to rise sufficiently in the coming years to offset any potential increases in payments as a result of an interest rate increase.
     •         You want a lower initial monthly payment than a fixed-rate mortgage would offer
     •         You think that interest rates may be lower in the future.
 
Adjustable rate mortgages are available in a variety of terms:
 
     •          3/1 ARM – Rate is fixed for the first 3 years and then subject to annual adjustments thereafter.
     •          5/1 ARM  - Rate is fixed for the first 5 years and then subject to annual adjustments thereafter.
     •          7/1 ARM – Rate is fixed for the first 7 years and then subject to annual adjustments thereafter.
     •         10/1 ARM – Rate is fixed for the first 10 years and then subject to annual adjustments thereafter.
 
  
In addition, there are Adjustable-Rate, interest-only mortgages that begin with lower interest-only payments for a fixed period of time.  This is typically the first 10 years.  Then the mortgage reverts to a fully amortizing payment over the remaining term of the loan.   However, loan characteristics and underwriting guidelines are stricter on these loans.
 
While you are paying interest only, your payments are not building any home equity.  Your original loan amount remains the same for the entire interest only period.  At the end of the interest only period when your loan reverts to a fully amortizing loan for the remaining term, combined with potential rate increases, your payments will increase significantly.
 
Interest-only loans tend to appeal to people whose income fluctuates (self-employed, commissioned or bonus) or if you expect to own your home for a short period of time.
 
 
Government Loan Options
 
FHA Loans – The Federal Housing Administration (FHA) offer government-insured mortgage loans.  These loans have features that make them easier for first-time home buyers.  Some of the features include:
 
    •         Low Down Payment requirements
    •         Flexible credit and income guidelines.
    •         Both fixed and adjustable rate loans are available.
 
VA Loans – The U.S. Department of Veterans Affairs (VA) offer government-guaranteed loans to qualified veterans.  These features include:
 
     •         Low or No down payment requirement
     •         Flexible credit and income guidelines.
     •         Both fixed and adjustable rate loans are available.
 
 
If you would like assistance in deciding what type of mortgage loan could be best for you, please call one of our mortgage loan offices at (800) 804-5560.