Freedom Mortgage's mortgage lending arm originates a large variety of loan types, including conventional 15-, 20-, and 30-year
fixed rate loans as well as 3-, 5-, or 7/1 adjustable-rate mortgages.
Fixed-Rate Mortgages – are best suited for those who’d like to lock into a specific interest rate. This means their mortgage payments will be the same every month. It also means the principal and interest rates on the loan won’t change. This is ideal for those looking to stay for a long time in their home, whereas adjustable-rate mortgages have an interest rate that may change over time.
Adjustable Rate Mortgages (ARM) – After an initial fixed-interest period (which is offered in three, five, or seven-year periods) the interest rate will change. Owners can take advantage of competitively low rates instead of being locked into the rate that was available at the time of their loan. On the other hand, this means that their interest rate – and consequently, their mortgage payment – could suddenly go up. However, it can be the best option for owners who are planning to sell in a few years.
Freedom Mortgage also offers several government-backed loans, such as
Federal Housing Administration Mortgages (FHA,) The U.S. Department of Agriculture (USDA) loan, Veterans Affairs (VA) loans, and The Home Affordability Refinance Program (HARP).
FHA Loans – These loans are geared toward first-time homeowners with low to moderate income that cannot make a large down payment. They also cater to those with lower credit scores and require a down payment as low as 3.5% of the total property price. Another perk is that the down payment can come from gifts or grants.
USDA Loans – Offered through the U.S. Department of Agriculture, these are geared toward those living in rural parts of America who have low to modest income. They do not require a down payment either or set a maximum purchase price.
Veterans Affairs Loans – These loans are designed specifically for current and retired members of the armed forces. One big perk of VA loans is that they do not require a down payment or private mortgage insurance (PMI payments), and tend to have lower interest rates compared to other loan options.
HARP Loans – These loans provide refinancing options to homeowners with loan-to-value ratios that are too high to be refinanced by other programs.
In other words, their home may be worth less than what is currently owed on their mortgage and this loan can help current homeowners refinance into a more affordable mortgage. It can also help homeowners lower their interest rate or even switch from an ARM to a fixed-rate mortgage. However, HARP loans have very specific requirements. For instance, in order to qualify, the homeowner must be current on their mortgage payments, the home must be their primary residence, the loan must have been originated before 2009, the loan-to-value ratio must be above 80%, and the loan should be owned by Freddie Mac or Fannie Mae.
Although all of these products have different requirements (such as
maximum and minimum loan amounts) and can vary depending on the borrower's geographic location, Freedom Mortgage’s extensive selection of mortgage solutions ensures the majority of borrowers will be able to find an option that meets their needs.