Mortgage Loan Products

Loan Types Available Mortgage Specialists of Illinois, Inc. is your mortgage broker if you need to Purchase, refinance or obtain a second mortgage/home equity loan. Regardless of your credit or income we have a program for you! We have relationships with over 25 different lenders, giving us the strength and flexibility to get your loan done! Even Bankruptcy and Foreclosure are problems that we can overcome. Apply today by calling 630-627-9580 or toll-free at 1-888-879-9800. Ask for one of our experienced, courteous loan officers, or apply on-line by clicking the button to the left. ARM's (Adjustable Rate Mortgages) There are a wide variety of adjustable rate mortgages on the market today. You may here such terms as a 1 year, a 3/1, 5/1 and a 10/1. These are very easy to understand. What you may not understand is why you should or shouldn't have an ARM! First, let's look at what these different types of ARMs are. The 1 year is just that - the loan is fixed for the first year and can then change (usually on the anniversery date of your closing). The amount it will change will depend on WHAT INTEREST RATES DO IN THE FUTURE! The second types of ARMs are fixed for a set number of years and then switch to a one year adjustable. These are the 3/1, 5/1, 7/1 and 10/1 ARMs. For example, the 5/1 is a 30 year loan that is fixed for 5 years. After the 5th year, it turns into a one year adjustable rate. All adjustable rate mortgages have caps that restrict the amount your mortgage can go up or down. For instance, an adjustable rate with 2/6 caps can never go up or down by more than 2% from one year to the next. The loan can never go up by more than 6% over the life of the loan. There are 3 terms you must be familiar with when trying to figure out what your interest rate will be. The first is the index. The index on a one year adjustable ARM is usually the 1 year Treasury Rate. You can get a copy of the Wall Street Journal or another financial newspaper & you can see that there are a variety of different treasury bills, but most adjustable rate first mortgages use the 1 year. Most home equity lines of credit use the PRIME RATE. The second term is the margin. The margin for most first mortgage adjustable rate loans is 2.75%, but they can vary. Be sure to ask as this can add up quickly, as you will soon see. Home equity lines of credit vary quite a bit as well. We have a large variety of home equity products through our lenders with different margins for you to choose from. Finally, you can now get your indexed rate, the final term you need to know. This is how you proceed: first, find out what your margin is. Then look in the paper & see where your index's interest rate is. Add the 2 together & you have your full interest rate. It really isn't that confusing once you've done it several times.   VA Loans VA loans are great - NO downpayment (that's right, 100% financing) and NO mortgage insurance! Give us a call today to apply - 1-888-879-9800. FHA Loans FHA loans are great for first time homebuyers. Why? Because they offer great rates & loads of "extras", such as 100% gift money, non-owner occupant co-signors and higher debt ratios than Conforming loans. FHA also allows greater flexibility when it comes to past credit problems. The cuurent downpayment for FHA loans is based on the Purchase price and is as follows: $1-50,000 = 1.25% $50,001-125,000= 2.35% Over $125,000 = 2.85% FHA has one of the best adjustable rate mortgages going (see above for a detailed explanation on adjustable rate morgages). The margin is only 2.75% and the caps are 1/5! This can mean thousands of dollars in savings over a few years! One of the new products that FHA has come out with is the 203K loan, also known as the "rehab" loan. This is a product that not only lends you the money to buy the property, but also lends you the money to repair it! Perfect for the first time homebuyer who wants to "step up" to a bigger house in a few years. Call one of our loan officers for all the details! Conforming Loans Conforming loans have their own advantages. With as little as 3% down, many people who thought they could never afford a house are surprised to hear just how much house they can afford! Conforming loans are usually a little cheaper overall than FHA loans, but they are both great products. We also offer NO POINTS/NO CLOSING COSTS programs for purchases and refinances on most of our Conforming loan products. Non-Conforming Loans Do you have credit problems or hard-to-verify income? We have many loan programs available that look past your mistakes & give you the credit you deserve. If you are a current homeowner in need of refinancing & paying off delinquent credit, we have many programs for you, too. Second Mortgage/Home Equity Loans Two words - "tax deductibility" is what makes these loans perfect for debt consolidation, home improvements, higher education or any other purpose you can think of. While credit card, auto, student loans or other debt is NOT tax deductible, you can usually deduct up to 100% of the interest on any loan that uses up to 100% of your home's value. Of course, you should always consult your accountant to make sure. There has been an explosion in the number of new products offered for home equity loans in the past several years. We have programs that can now lend up to 125% of your home's value and have a great variety of products for people who have trouble verifying their income, or who have had past credit problems. In fact, consolidating your bills and paying off your debts is one of the best ways to give yourself a "fresh start" with credit and get you on the road to "A-1" status! Why not apply now? It's easy, just "click" on the button to the left or call at 630-627-9580. We will give you an answer over-the-phone in 30 minutes! Home equity lines of credit are also becoming very popular. With this product you are given a credit limit, say $20,000 as an example. If you only use $5,000, you are only charged interest for $5000. You still have access to $15,000. This is a great loan for investors, parents with tuition bills to pay and people who are thinking of remodelling their home a little at a time.