Understanding which mortgage loan is right for you

By: Clint Womack, Owner of Vintage Lending

I received a bachelor’s degree in sports medicine from Northern Arizona University. I originally planned to become a surgeon and then had second thoughts. Instead of medicine, I decided to follow the path of my father and grandfather and started my own business. I am a third-generation business owner and have no regrets. In 2007 I started C&E Financial Group Inc in Orange County, California. We operate under the trade name of Vintage Lending. We originate residential mortgage loans in seven western states (CA, CO, ID, OR, TX, UT, WA). We have a team of over 20 professionals who are well trained and with years of experience.

No two loans are the same because no two people are the same. Each loan is slightly different and must be custom fit to each individual client. It is critical that you meet with a mortgage professional that is well versed in the nuances and variations of the hundreds of different loan programs available. We will review your individual scenario and present you with your best loan options.

Mortgages are complicated financial instruments so there are lots of different questions that come up regularly. A common misconception is that the APR is the same as the actual interest rate. The APR is only used for comparison purposes, it is not the actual interest rate. The actual interest rate is what appears on the promissory note and is used to calculate the monthly principal and interest payment. As the APR gets closer to the actual interest rate, the closing costs get lower.

The Internet is a good place to begin your research. However, nothing can replace a conversation with a mortgage professional that is well versed in the various mortgage programs and works with them on a daily basis. Start your research on the Internet, then give us a call for a free evaluation.

What are two or three of the most common types of loans that people apply for and the main benefit of each one?

30-year fixed rate mortgage. The benefits are that the rate is fixed for 30 years and that the principal and interest portion of the monthly payment can never change. This is one of the most popular loan programs and allows people to budget around a fixed mortgage payment.

10/1 ARM (adjustable rate mortgage). This loan usually has a lower interest rate than the 30-year fixed mortgage and the initial rate is fixed for 10 years. This is a great loan program for someone who doesn’t plan to be in the home for more than 10 years. With a lower rate than the 30-year fixed rate mortgage, the 10/1 ARM allows you to save extra cash with a lower monthly payment for the first 10 years.

15-year fixed rate mortgage. This will have a lower interest rate than the 30-year fixed rate mortgage and the mortgage will be paid off in half the time. The interest paid over the life of a 15-year fixed mortgage is dramatically lower than that of a 30-year fixed mortgage. This is a great loan program for people who can afford a higher monthly payment. We also offer a few $0 down loan programs and another program that only requires 0.5% down.

What advice would you give to prospective home buyers who want a lot of flexibility with their mortgage?

I would recommend a 30-year fixed rate mortgage with 0 points. This allows you to keep your monthly payment manageable but also allows you to pay extra at any time. By doing a 0 points loan, you can refinance or sell the home at anytime and don’t have to worry about losing the money that you paid for points on the previous loan.

Our toll-free phone number is (877) 933-7627. Email me at clint@VintageLending.com and visit our website: www.VintageLending.com. We also host a talk radio show about real estate and finance: Womack Radio.

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