Fixed or adjustable? Bank or Broker? Selecting a mortgage loan to suit your needs.
You’ve found the home of your dreams. Or perhaps you’re ready to refinance—to lower your monthly payment, or get cash out for a big-ticket expense. First, you need to understand the benefits of using a company that is both a mortgage bank and mortgage broker – which we are – and then discover what home loan options are available to you.
Mortgage bank or mortgage broker?
What’s the difference?
A mortgage bank is any bank lending to you directly. This includes your local community bank, a credit union, or a well-known national bank. When working with a mortgage bank, you’re limited to the loan product lines they offer—and better loan alternatives might be available.
Guarantee Mortgage, a division of American Pacific Mortgage Corp., is a mortgage banker, with the ability to broker loans. That means we are able to lend you money directly or we give you access to hundreds of loan options all in one place, and are more likely to be able to find the loan that fits your needs.
We provide the options—you get the loan!
Popular home loan options.
The Loan Advisors at Guarantee Mortgage will help you narrow down the possibilities; or, read more about the various loan types presented here.
- 30-year fixed rate mortgage: A true fixed-rate mortgage for 30 years with a true fixed payment and fixed interest rate.
- 15-year fixed rate mortgage: Pay down your home loan faster and save thousands of dollars you would have otherwise paid on a 30-year loan.
- Adjustable rate mortgage: ARM loans generally begin with an interest rate 2-3 percent below a comparable fixed-rate mortgage. The interest rate is fixed for an initial period (for example, for 5, 7, or 10 years), and then adjusts at specified intervals depending on changing market conditions within certain adjustment caps.
- Federal Housing Association (FHA) loan: With low down payments, flexible loan options, and stable rates, FHA loans are popular among new homebuyers and first-time mortgage holders.
- Veterans Administration (VA) loan: Veterans and members of the U.S. military often rely on VA loans for their home mortgages which can include low down payments and less-stringent credit requirements.
- Jumbo (non-conforming) loan: If the amount of your mortgage will exceed the conventional loan ceiling set by Fannie Mae and Freddie Mac–$417,000 for most areas in the United States—then you’ll need what’s called a jumbo loan. Jumbo loans are typically for loan amounts exceeding the $417,000 ceiling. They have different underwriting guidelines and pricing.
- Interest-only loan: Want the lowest possible payment at the start of your loan, with higher payments kicking in later? Then you might want to consider the interest-only mortgage, which contains a preset interest-payment-only period, and then adjusts to include both principal and interest. These loans are not for everyone, but offer many advantages for certain clients and situations.
Get smart about mortgages at our Learning Center.
Want to better understand mortgage “lingo”? Want to be fully prepared when you begin the mortgage process? Are you unsure of what you need to get a loan, or what a mortgage broker actually does? Use these resources to get answers to your questions.