Hamilton Equity

"If you have a good relationship with your customer, the business process flows that much more smoothly."
~ Richard Pratt

Loan Programs:
Hamilton Equity closes Residential, Commercial, and Construction loans.

Conventional Loans:
Conventional loans may be conforming and non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac.

The 2007 conforming loan limits for first mortgages have not changed from those of 2006:

One-family:	$417,000
Two-family:	$533,850
Three-family:	$645,300
Four-family:	$801,950

Jumbo Loans:
Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as "jumbo" loans. Because jumbo loans are bought and sold on a much smaller scale, they often have a little higher interest rate than conforming, but the spread between the two varies with the economy.

Fixed Rate Mortgages (FRM):
With fixed rate mortgage loans, the interest rate and your mortgage monthly payments remain fixed for the period of the loan. Fixed-rate mortgages are usually available for 40, 30, 25, 20, 15, and 10 years. Generally, the shorter the term of a loan, the lower the interest rate you could get.

The most popular mortgage term is 30 years, commonly referred to as a "30-year Fixed Rate Loan". During the early amortization period, a large percentage of the monthly payment is used for paying the interest portion of a loan. As the loan principal is paid down, more of the monthly payment is applied to principal portion than the interest.

Adjustable Rate Mortgages (ARM):
Variable or adjustable rate loans have interest rates, and accordingly monthly payments, that fluctuate over the period of the loan. ARMs usually have two phases. The first phase is typically 2/3/5/7/10 years in which the interest rate is fixed, as in a Fixed Rate Mortgage. In the second phase of this 30 year loan, the interest rate, and consequently the monthly payment, fluctuate according to a predetermined index. Two reflect these two phases, ARMs are commonly referred to in terms like "2/28 ARM" or "5/25 ARM" where the first number indicates the fixed term and the second number indicates the adjustable term.

Interest Only Mortgages (IO):
Interest only loans behave similar to ARMs in that there are two phases of the loan expressed in terms like "5/25 IO Loan" or "10/30 IO Loan". The first number represents the first years in which only the interest portion of your mortgage payment is due. In the second phase, your monthly payment also takes into account the principal of the loan which has remained unchanged (normally paid down) up to this point.