Home Purchase Programs
Prospect Mortgage: Home Loan Solutions
It is important that you understand the features of your home loan and that it meets your financial needs. We can assist you in that determination.
As a strong direct lender with the flexibility to also act as a broker, we provide choice, convenience, and control throughout the loan process. We offer a full suite of lending products because we recognize the importance of having the right loan for every situation. Below is a sampling of just some of the programs available through Prospect Mortgage.
Fixed-Rate Mortgages
We offer our borrowers fixed-rate mortgages with a choice of several repayment periods. These loan programs have the same interest rate for the life of the loan and monthly payments (principal and interest) that never change. If you escrow your property taxes and insurance, those expenses can change, which will affect your monthly payments. Fixed-rate mortgages may be a good choice if you plan to stay in your home for a long time or if you feel more comfortable knowing your payment cannot change.
Our company also offers a fixed rate product with an interest-only option. This allows you to pay interest only during this initial period. After the interest-only period the loan will fully amortize over the remaining loan period. This option will be more costly as you are paying interest on the total loan amount for the interest-only period. Additionally, if you have mortgage insurance, you will pay mortgage insurance for a longer period of time. Finally, the principal balance will not be reduced unless you pay more than interest only amounts during the interest-only period.
Adjustable-Rate Mortgages (3/1, 5/1, 7/1, and 10/1 ARM Programs)
An ARM is a mortgage in which the interest rate and payments are adjusted periodically based on a pre-selected index. Subject to certain limitations, the rate and payments on an ARM loan rise and fall with the market.
Our 3/1, 5/1, 7/1, and 10/1 ARMs allow you to pay a lower introductory interest rate than many fixed-rate mortgages offer. Your interest rate and payment are fixed for the initial fixed rate period of 3, 5, 7, or 10 years, depending on the program you select. After the initial fixed period, your interest rate and payment will follow the movement of the index up and down, with certain limits. Our ARMs are among our most popular loans because they help you qualify for a larger home, there is no negative amortization, and your loan may be assumable after the fixed rate period of the loan. An interest-only option is available for these products. It is important to note that with an ARM, you may have a substantial increase in payment after the fixed-rate period and the interest rate over the life of the loan can typically increase five to six percentage points above the initial interest rate.
For more information, contact the Prospect Mortgage Hawaii Team.
Loan inquiries and applications in states where I am not licensed will be referred to a Loan Officer who is licensed in the property state. Equal Housing Lender. Prospect Mortgage is located at 15301 Ventura Blvd., Suite D300, Sherman Oaks, CA 91403. Prospect Mortgage, LLC (Unique Identifier #3296) is a Delaware limited liability company. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change at any time and without notice.
