Northeast Funding Services

Where What's Best For You Matters Most

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  • Purchase
    • Conventional Mortgage
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      • VA Loans: 10 Things To Know About The 100% Mortgage Program
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      • Types of Reverse Mortgages
      • FAQ’s about Reverse Mortgages
      • Are Reverse Mortgages Good?
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    • VA Home Loans
      • VA Loans: 10 Things To Know About The 100% Mortgage Program
      • 5 things to know about getting a VA loan
      • VA Home Loans: A Benefit You’ve Earned
    • FHA Loan
    • USDA Loan
    • Reverse Mortgage
      • Reverse Mortgage Counseling
      • Types of Reverse Mortgages
      • FAQ’s about Reverse Mortgages
      • Are Reverse Mortgages Good?
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Fixed Rate verses Adjustable Rate Loans

A fixed-rate loan, allows for your monthly payment of principal and interest to remain the same for the life of your loan. Fixed-rate loans are available in many types; 30-year, 20-year, 15-year, and 10-year. You have the option of a bi-weekly mortgage which shortens the life of the loan. This is done by paying every two weeks, which equals out to 26 payments a year, giving you an extra monthly payment every year.

During the early amortization period of a fixed-rate loan, a large percentage of your monthly payment goes towards the interest, and a smaller portion towards your principle. This gradually reverses itself as the loan ages.

Adjustable rate mortgages, or ARMs, come in many more varieties. Mostly ARMs determine what you must pay based on an outside index. They usually adjust every 6 months or once a year.

Most programs have a sort of “cap” that protects you from your monthly payment going up too much. In addition, almost all ARM programs have a “lifetime cap” in which your interest rate can never exceed that cap amount… ever.

ARMs usually have their lowest, most attractive rates at the beginning of the loan, and guarantee that rate for any where from a month to 10 years. For example “3/1 ARMs” or “5/1 ARMs” mean that the introductory rate is set for 3 or 5 years, and then adjust according to an index every year thereafter, for the life of the loan. These types of loans are often best for people who may be moving and selling their home within 3 or 5 years, depending on how long the lower rate will be in effect.

With ARMs, you do however risk your rate going up, but keep in mind you are also able to take advantage when the rates go down, by keeping more money in your pocket each month that would otherwise have gone toward your mortgage payment.

Purchase Pre-Qualify

Keep the dream alive by getting pre-qualified before you start looking for a home.

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VA Home Loans

100% Financing may be an option if you're a United States Veteran, Service Member, or not remarried spouse.

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Refinance / Debt Consolidation

Using the equity in your home to payoff other bills or needs is a great option.

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Reverse Mortgages

Stop fighting to stay afloat. Use the reverse mortgage to give you quality of life and eliminate your mortgage payment and other bills.

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Recent Posts

VA home loans for United States veterans offered by Northeast Funding Services

VA Loans: 10 Things To Know About The 100% Mortgage Program

VA Home Loans: A Benefit You’ve Earned

Reverse mortgage loans are provided by Northeast Funding Services

Reverse Mortgage Counseling

Reverse mortgage loans are provided by Northeast Funding Services

Are there different types of reverse mortgages?

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Purchase / Pre-Qualify

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Refinance

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  • No Cash-out Rate & Term
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Contact Us

New York

125 Wolf Road
Suite 217
Albany, NY 12205

518-782-1855

Email Us

South Carolina

638 E. Point Dr
Gilbert, SC 29054

803-239-4848

Registered Mortgage Broker New York Department of Financial Services, and South Carolina Department of Consumer Affairs NMLS ID#46813. Loans provided through third party providers.

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