You can truly have luxury service for all your mortgage needs
Luxury Mortgage Corp® offers a wide array of adjustable and fixed rate mortgage products for loans on residential properties. As a mortgage lender, we have the ability to set customized pricing based on mortgage programs structured to suit your individual needs. We have the power to lock in your rate, approve, underwrite and close your loan.
Maintaining relationships with many regional lending institutions, we may also work as a mortgage broker to provide our consumers access to an even wider selection of mortgage options to choose from.
An FHA Mortgage is provided by an FHA approved lender and backed by the Federal Housing Administration. An FHA mortgage can be an attractive option for first-time homebuyers, those seeking a smaller down payment option or homeowners who have experienced past credit issues. Typically, FHA mortgages allow for a lower percent down payment and offer numerous credit and guideline enhancements extending home-ownership beyond conventional lending guidelines. Download our FHA lending tips and insights here.
Conforming Mortgages are quasi government-sponsored loans that are intended to distribute mortgage lending equally throughout the United States. The leading lending bodies are Fannie Mae and Freddie Mac. Both of these institutions set parameters for approved lenders to follow while providing these loans. The benefits of conforming loans are reduced interest rates, higher loan to value limits and a streamlined application process. A variety of conforming loan products are available from long term fixed interest rates to short term adjustable rate loans. Consult your loan originator for the loan that is right for you.
Conventional loan limits are as follows:
Similar to a conforming mortgage, a conforming jumbo mortgage is also controlled and guided by Fannie Mae and Freddie Mac. However, it offers higher loan amounts throughout the country based on the region's median home values. This application process is also streamlined. It offers extended loan-to-value ratios and increased lending limits. The maximum loan amount for a Conforming Jumbo loan is $625,500. However, some areas have a lower maximum. Click here to see what lending limits are offered in your area. Typically a price premium is applied to the conforming loan pricing on conforming jumbo loans.
Jumbo mortgages are loans that exceed the conforming jumbo limits. While many underwriting guidelines are based on those set forth by Fannie Mae and Freddie Mac, these loans are not governed by these entities. The loan limits for jumbo lending are not set by any governing body and typically range from $625,501 to around $1,500,000 or $2,000,000. Streamline processes have been established for these loans. However, additional requirements are often applied for underwriting and approval. For example, the lender may ask for an additional appraisal and/or impose slightly lower loan to value ratio restriction. While Jumbo mortgages are also available with long term fixed interest rates, adjustable rate products for this option are more common.
Super jumbo mortgages are typically considered to be loans greater than $2,000,000 and, like a jumbo loan, do not have defined or formal lending limits. With fewer lenders participating in these larger loans, super jumbo mortgages are considered a niche in the industry. Generally, a private banking partner or a super jumbo specialized lender provides these loans. Luxury Mortgage has a long standing history of providing homeowners this product. Please contact your Luxury Mortgage super jumbo specialist for more information.
These programs offer consumers real alternatives to traditional income documentation requirements. Replacing the need for tax returns by using the cash flow i.e. historical bank deposits to establish income. Other options include 100% of rental income from investment homes and assumed depletion of investment accounts such as marketable securities, stock options and retirement accounts. When tax returns are too complex, Simple Access™ mortgage is the solution.
This is the most common mortgage where: Your monthly payments including interest and principal never change. Fixed rate fully amortizing loans have two distinct features: (1) the interest rate remains fixed for the life of the loan and (2) the payments remain level for the life of the loan and are structured to repay the loan by the end of the loan term. The most common fixed rate terms are 30 and 15 year. These terms evenly distribute the monthly principal and interest payments over their respective terms. Since the 15 year term is shorter, the monthly payments would be higher than the 30 year. Other terms available are 20 and 40 year.
With an Adjustable-Rate Mortgage, (or A.R.M.), the interest rate and payment adjusts at periodically based on the loan program. For example, a one year adjustable will adjust each year where a five year will adjust every five years. Adjustments are calculated by applying a predefined margin to the loans rate index on the future date based on the adjustable loan term. The Interest rates on adjustable loans are generally lower than fixed rate loans and the shorter the adjustment period the lower the interest rate.
Adjustable rate loans are available with adjustment terms adjusting daily, monthly, annually and semi-annually (every 6 months).
Hybrid loans are adjustable rate loans with a component that is fixed for a specified period. An example of a hybrid loan would be a 3/1 ARM. The interest rate for this program would remain the same for the first 3 years and will then adjust each year thereafter. Adjustments for this loans are also calculated by applying a predefined margin to the loans rate index on the future date based on the adjustable loan term.Typical Hybrid ARM mortgage products offer an initial fixed rate options of one, three, five, seven and 10 years and all are generally amortized over a standard 30 year period. Interest only options are available on most Hybrid ARM loans. Initial interest rates are usually priced between short term ARM loans and long term fixed rate loans. With Hybrid loans, the shorter the initial fixed term, the lower the interest rate will be.
Amortization is the process by which loan principal increases over the life of a loan. With each mortgage payment that is made, a portion of the payment is applied towards reducing the principal, and another portion of the payment is applied towards paying the interest on the loan. In the early years, a larger portion of each payment is devoted to interest and a smaller contribution is made toward the principal. This reverses as the loan matures, with larger portions of the payments going toward paying down the principal and the smaller being applied to interest. This results in the majority of the interest that is due over the life of the loan to be paid in the early years.
An interest only mortgage allows you the flexibility of paying only the interest on your mortgage for a selected number of years. While this results in a lower monthly payment, it does not reduce the principal balance of the loan as it would with an amortizing loan. Because larger portions of the interest due over the life of an amortizing loan (see amortizing loan) is paid in the earlier years, the interest only loan is generally a better option for homeowners who have seasonal income or who don't expect to stay in their home for more than 5 to 7 years.