Loan Programs 30 or 15 Year Fixed Rate Loans A mortgage loan of 30 or 15 years duration in which the rate of interest remains unchanged throughout the term of the loan. The often preferred method of financing by homeowners because of the certainty of the monthly principal and interest payments. The most popular terms are either 30 or 15 years, but other terms are available. Adjustable Rate Mortgage (ARM) A mortgage loan written for a fixed length of time with an interest rate that is periodically adjusted up or down within a specified range. Mortgage payments therefore will fluctuate over the length of the loan. Lenders establish maximum limits of potential adjustment per year and over the life of the loan. Adjustments can vary, but the mostly widely used adjustables have fixed periods of 1, 3 or 5 years. This type of financing can be confusing and borrowers should be sure they thoroughly understand their program before committing to an adjustable. Seek a qualifed mortgage professional for advice and counsel on this type of loan. Jumbo and Super Jumbo Loans A loan greater than the normal conforming limit of $310,750. Super Jumbo would usually be larger than $650,000. Available for luxury purchases or refinances needing the large loan amount. Spectrum Mortgage has resources available to #3 million and more. Second Home Loans Second residences occupied on a part time basis and not considered to be an income producing property. A non-income producing residence used as a temporary demicile when away from the primary residence. Programs and terms available identical to those available for owner occupant financing. Vacation Home Loans Second residences utilized as vacation homes. Investor Loans Non-owner occupied properties purchased as investments and to generate rental income. Reates and terms can vary greatly. Spectrum Mortgage has a full range of programs available for single family, condominium and unimproved investment property loans. Zero Point Loans Loans producing a sufficient yield to the lender so that the borrower's cost in points can be absorbed. Situations may exist where minimizing expenses is very important and having to pay points would be prohibitive to the transaction. Commercial Loans Financing for commercial real estate as distinguished from residential real estate. Such as stores, warehouses or apartment buildings. The same flexibility available for residental loan applicants can be utilized in the pursuit of commercial financing when a mortgage broker, like Spectrum Mortgage, is employed. Construction Loans Short term financing for the construction of real estate. Generally followed by long term financing called, take out or permanent financing, issued upon the completion of the improvements. Very useful if the home is sold upon completion. Construction/Permanent Loans The short term construction financing and the take out, or permanent financing, built into one loan. The long term financing starts upon the completion of the construction of improvements. A great convenience and cost saver allowing one loan to serve two functions. Short Term and Bridge Loans Temporary financing allowing for short term objectives to be accomplished not possible using longer term financing. Typically between 1-2 years duration. Often used by new homebuyers who have not yet sold their existing residence. Agricultural Loans Financing available for properties agriculturally zoned loaced in certain parts of all of Hawaii's islands. First Time Homebuyer Programs Flexible programs to address into increasing numbers of Americans of modest income who would otherwise be unable to obtain affordable housing. Expanded guidelines allow for easier qualifying and usually involves required counseling on homeownership and credit management. Cooperative (Co-op) Loans Financing for a type of real estate ownership involving stock ownership in a corporation owning the building. Difficult type of financing to obtain because there is no individual ownership. Second Mortgage A mortgage which would rank second behind the first mortgage in priority. Used to preserve the existing first mortgage for any reason and yet borrow against the remaining equity in a property. Equity Lines of Credit A combination of a line of credit and equity loan. A maximum loan amount is established based on credit and equity. A mortgage is recorded against the potential borrower's property for said maximum loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the mortgage. 100% L-T-V Loans Loans made up to 100% of appraised value. Hard Money Loans Asset based loans. EXTREMELY fast closings with little, or no, documentation and verification. Equity in real estate and a repayment plan are the keys. Higher rates and fees are to be expected. Spectrum Mortgage Pioneer Plaza 900 Fort Street Mall, Suite 520 Honolulu, Hawaii 96813 Bus: (808) 522-5522, Fax (808) 599-5941