With a fixed rate mortgage, you know exactly what your principal and interest payment will be every month. It won't change because your interest rate won't change. There is only one instance in which your total payment will change when you have a fixed rate mortgage. If you pay your home insurance and real estate taxes through your mortgage, any time there is a change in those costs, there will be a change in that part of your mortgage payment as well. If interest rates go up, you're protected with a fixed rate mortgage. But, you won't benefit if rates go down. You can; however, take advantage of falling rates by refinancing.

•  Consider a fixed rate mortgage if you:

•  Want the certainty of a fixed principal and interest payment.

•  Believe interest rates will probably go up.

•  Are on a fixed or restricted budget.

Which term is right for you?

A 30-year loan has lower payments, but you pay longer. Payments on a 15-year or 10-year mortgage will be higher, but not two or three times higher.

This example compares the principal and interest payments for a 30-year, 15-year and 10-year mortgage based on the same loan amount and rate.

(Assumes loan to value below 80% with no PMI insurance. Rates shown are for illustration purposes only and do not represent current rates as published elsewhere in the site.)

All these figures are great, but what do they mean? Well, let's compare the 15-year to the 30-year mortgage. By paying $104.81 more per month...

you own your home in half the time

and save a total of $53,550 in interest.

Plus, unlike our simple example above, interest rates on 15-year mortgages are usually lower than on 30-year loans, so you could save even more. And if you compare the 10-year mortgage to the 30-year mortgage in our example, you save a total of $68,829.60 in interest payments.

Many of our loan programs are available with fixed rates including FHA and VA loans.

Adjustable Rate Mortgage (ARM)

Compared to fixed rate mortgages, Adjustable Rate Mortgages (ARMs) offer a lower interest rate to start, so your monthly payments are generally lower. But, the interest rate is adjusted at times, based on an "index". Some of the more common indices include United States Treasury Bills, California's 11th District Cost of Funds and the London Interbank Offered Rate (LIBOR). Every lender then adds a set margin to that index. The result - Your payments could go up or down, depending on the economy and its resulting indicators.

The index used, the margin added, and how often your rate is adjusted (usually every 1, 3, 5 or 7 years) can be different from lender to lender. Be sure to ask what they are.

Look for ARMs with interest rate "caps". These limit how much your rate can go up or down each time it is adjusted, and how much it can go up or down over the life of the loan.

•  Consider an Adjustable Rate Mortgage if you:

•  Want or need more home than you can qualify for now at a fixed rate.

•  Are confident your income will increase.

•  Plan on moving within seven years of buying your home.

What else should you know about ARMs?

If the starting rate is very low compared to others, you're probably getting a "discounted" rate. In that case, even if market rates stay the same, your payments will go up when it's time to adjust.

Many of our loan programs are available with adjustable rates including FHA loans.

Jumbo Mortgages

A Jumbo Mortgage is a mortgage with a loan amount above conventional loan limits. Jumbo Mortgages apply when agency (FNMA and FHLMC) limits don't cover the full loan amount. Fannie Mae (FNMA) and Freddie Mac (FHLMC) are large agencies that purchase the bulk of residential mortgages in the U.S. They set a limit on the maximum dollar value of any mortgage which they will purchase from an individual lender. Currently, this limit is $417,000. This leaves a portion of the market to look elsewhere for placement. Other large investors, such as insurance companies and banks, step in to fill the need with maximum mortgage amounts going to the $1 million or $2 million range. The average interest rates are typically greater than normal for conforming mortgages, and vary depending on property types and mortgage amount.

FHA / VA Mortgages

FHA Loans

FHA loans usually offer liberal qualifying criteria and require smaller down payments. Both fixed and adjustable loans are available. These loans are insured by the Federal Housing Administration and you must meet certain FHA guidelines. These loans are offered directly to the home buyer via companies such as National City Mortgage. You could call the FHA loan the original first-time homebuyer program.

VA Loans

Eligible veterans can get long-term loans with little or no down payment, more flexible qualifying standards, and possibly, lower interest rates. These loans are made possible by the Department of Veterans Affairs. They are offered directly to the home buyer via companies such as National City Mortgage. Fixed loans are available.

Other Loan Options

Information

We offer a variety of mortgage programs for home buyers with particular requirements or specific circumstances. Getting a loan that matches your situation is important. Review the specialized loan options below and find the one that fits your needs.

Balloon Mortgages

A Balloon Mortgage is a mortgage that has regular monthly payments which amortize over a stated term, but call for a final lump sum (balloon payment) at the end of a specified term. This is a fixed rate mortgage and the equal payments are fully amortized. The amortization schedule can be set for 15 or 30 years with a balloon payment due in 5 or 7 years.

No Doc Programs

No Doc Programs are designed for borrowers whose income may be more difficult to verify (self employed, tips, bonuses, commissions, rental income, etc). These people often have good assets and good earning potential, but they have minimal documentation. These programs are typically based on credit rating only and the borrower won't be questioned about income or assets.

Streamlined Purchase Mortgage

The Streamlined Purchase Mortgage is available to borrowers whose loan is currently serviced by National City Mortgage Co. and has been for the last 12 months. The benefit of this program is that it requires limited documentation allowing you to minimize the paperwork involved with purchasing a home.

Interest Only ARM Program

The Interest Only ARM was created for borrowers who don't have the budget to immediately pay their full mortgage payment, but will in a few years. Whether the borrowers will have a large debt paid off or will be making more money in a few years, this program lowers the short-term payment making it more affordable. The Interest Only payment is for a set period of time and then adjusts to a fully amortized payment for the remainder of the loan term. But, until then, the Interest Only ARM Program makes the payment more manageable.

Home Equity Loans / Credit Lines

Put Your House to Work

Now that you've built equity in your home, it makes good sense to put your house to work for you. That's easily done with our home equity loans and home equity lines of credit. Either way is a great way to borrow for home improvement, a new car, bill consolidation, your children's education, or simply to give you the peace of mind that comes from knowing you have money available in case of an emergency.

The main difference between the two products is the way you access funds.

A Home Equity Line of Credit is a revolving personal line of credit that lets you borrow again and again.

A Home Equity Loan lets you borrow a specific amount for a specific time

The other difference is why you need the funds:

A home equity line of credit empowers you to use funds when you want, for whatever reason and it eliminates the need to apply for a loan every time you need money.

A home equity loan is ideal if you need a set amount of money for a specific purpose. It offers the security of equal monthly payments with a fixed interest rate, and the comfort of only borrowing what you need.

Reasons Are Clear

More people are choosing home equity financing for their borrowing needs. The reasons why are clear:

Applying is easy and takes little time.

Interest rates may be lower than other forms of credit.

The interest you pay may be tax deductible. (Consult a tax advisor regarding the deductibility of interest.)

The money can be used for many purposes.