At first glance, selecting the right mortgage to suit your needs can be a little intimidating, but it doesn't have to be. The professionals at Spire Financial are dedicated to simplifying the process and educating you about the many available mortgage options.

This page provides you with a straightforward overview of various mortgage plans. Your Spire Financial representative will be happy to answer your questions about any of them.

Fixed-Rate Mortgages
Adjustable-Rate Mortgage (ARM)
Fixed/ARM Hybrid
Fixed/ARM Hybrid, Interest First "Interest Only"
Balloon Mortgage
Low and No-Down-Payment Loans
LIBOR Interest Only Alternative Loan
Stated Income and Stated Asset Loans
Jumbo Loans
Refinancing
Second Mortgage or Home Equity Loan

Fixed-Rate Mortgages
This loan type has fixed principal and interest payments for the life of the loan. It's ideal for borrowers who desire predictable monthly payments, which is the main advantage of this loan.

A potential disadvantage of a fixed-rate mortgage is that the interest portion of the payment remains the same when interests rates go down. In addition, the portion of your monthly payment that includes insurance and taxes could change from year to year.
Return To Top

Adjustable-Rate Mortgage (ARM)
This mortgage type usually starts with a lower interest rate and lower monthly payment. However, as market interest rates adjust over time your payment can either increase or decrease. This is a good loan for borrowers that want to take advantage of low interest rates, but have the financial means to handle the possibility that interest rates may rise over time.

The upside of adjustable-rate loans is that you can take advantage of low market interest rates when starting your loan. If interest rates drop, you'll automatically be able to benefit from an even lower monthly payment. The downside of this loan is that your monthly payments are less predictable and rates can also rise, which automatically raises your monthly payment.
Return To Top

Fixed/ARM Hybrid
This loan combines elements from fixed- and adjustable-rate loans. It normally starts with a lower interest rate than a traditional fixed-rate mortgage. Your initial payment will be fixed for a specified term, and then your interest rate and principal payment will be adjusted over the remainder of your loan.

This can be a good loan for home buyers who are less financially established at the beginning of their loan, but who see themselves becoming more financially stable over time. It's also good for those who plan to sell their home or refinance early in the life of their loan.

An advantage of this loan is it provides you a chance to establish more financial stability during the early, fixed term of your loan. A potential downside for some would be that it requires careful planning, financial advancement and self-discipline.
Return To Top

Fixed/ARM Hybrid, Interest First "Interest Only"
This plan can reduce your monthly payments by allowing you to pay interest only on your loan. A traditional mortgage entails making interest and principal payments each month. This loan option can be well suited for those who are less financially stable at the beginning of their loan, but who see themselves becoming more financially stable over time. It's also a good loan for those who plan to move or refinance their loan early.

The advantage of this loan is that interest-only payments are completely tax deductible. In addition, you have the option of paying down your principal, which can reduce the amount of interest you must pay each month.

A disadvantage of this loan is there is no scheduled principal reduction built into your monthly payments during the loan's interest-only period. When you are required to begin paying down your principal, your monthly payments may shoot up dramatically because your principal loan must be paid off in a shorter period of time.
Return To Top

Balloon Mortgage
This loan typically has a lower interest rate than traditional fixed-rate loans. This may be a good option for first-time buyers who plan to sell after a few years, or people who must often move in their career.

The advantage of a balloon mortgage is the lower interest rate and simplicity of the loan. The disadvantage is after the initial balloon period (3, 5 or 7 years) you may be required to pay off the loan balance in one lump sum. If you're unable to do so, you'll usually have to refinance the loan or sell.
Return To Top

Low and No-Down-Payment Loans
There are a variety of low or no-down-payment loans available. Your Spire Financial representative would be happy to tell you more about them. They can be good loans for first-time home buyers with excellent credit records but some income limitations.

The advantage of these loans is that you can secure a mortgage with little or nothing down if you have excellent credit. A potential downside is that low or no-down-payment loans usually require private mortgage insurance and/or possibly a higher interest rate.
Return To Top

LIBOR Interest Only Alternative Loan
LIBOR (London Interbank Offering Rates) interest only loans offer a rate that is lower than other adjustable-rate loans. Your payments initially will be interest only, and after a specified period they will change to principal plus interest. This is a loan type well suited for first-time borrowers and those seeking larger loans who expect to be able to increase their payments after several years.

An advantage of LIBOR loans is that the interest rate historically remains below U.S. Treasury-based ARMs, which allows more people to qualify. A potential negative of this loan is that after a designated number of years your monthly payments will increase and the interest rate will automatically adjust annually.
Return To Top

Stated Income and Stated Asset Loans
These programs require much less documentation from the borrower about their income and other assets. They can be ideal for those who are self employed or who have complicated financial records.

An advantage with these loans is that in many cases pay stubs and previous tax returns are not required. Disadvantages are that an excellent credit history is necessary and the types of properties these loans can be used for may be limited.
Return To Top

Jumbo Loans
These are fixed- and adjustable-rate mortgages available to some home buyers looking for expensive homes in higher-priced communities.

The disadvantage of Jumbo Loans is that they're considered "high risk", so some lenders will charge higher interest rates for them.
Return To Top

Refinancing
There are a wide range of refinancing options available. Plans are as varied as home buying mortgages. Refinancing enables homeowners with equity to take advantage of lower interest rates and borrow cash for home improvements or consolidating debts.

A potential downside of refinancing is that you must close the new loan and this could entail paying some or all of the closing costs.
Return To Top

Second Mortgage or Home Equity Loan
These loans are available in various fixed- or adjustable-rate packages. They can be ideal if you wish to avoid mortgage insurance protection or if you have substantial equity in your home.

These loans may enable you to create lower monthly payments, or provide cash to you for home improvements or consolidating debt. Such loans can increase the number or amount of monthly payments.
Return To Top