Mortgages
 At Trident Mortgage Corporation, we work with more than 80 lenders to insure that we can find a program to suit your particular needs.
Types of Mortgages
Conventional: This mortgage is a contract between the lender and the borrower, at the lender's risk. It adheres to strict FNMA and FHMLC under-writing guidelines. This mortgage is not insured by any federally insured program. This type of loan usually provides you with the best rates.
FHA (Federal Housing Authority): The FHA will insure the loan for the lender against loss in case the buyer cannot meet payments. It allows for low down payments on one to four unit owner occupied properties.
VA (Veteran's Administration): This federal agency will guarantee mortgages through private lenders to qualify members of the armed forces, their widows or veterans.
Adjustable Rate Mortgages (ARM's): The interest on an ARM may vary up or down at fixed intervals. It offers a low beginning interest rate that will go up after a certain time. ARM's are of special interest to buyers who know their income will ride in the future or who don't plan to own the home for many years.
Fixed Rate: The interest rate on this agreement stays the same for as long as you hold your mortgage, no matter how interest rates change on the market.
Non-Conforming: This loan does not have to meet any standards. There are non-conforming loans for people with less than perfect credit and for those who have no down payment.
Mortgage Terms to Know
Closing Costs: Costs that the buyer of a home has to pay at the time of purchase. Closing costs usually include an appraisal fee, title search and lawyer's fees. They may also include "points" and other fees, such as underwriting processing fees and mortgage insurance if required. Closing costs are in addition to your down payment and may vary slightly from lender to lender.
Homeowner's Insurance: Lender's require home buyer's to purchase this insurance. It protects you against fire and in some areas, floods as well. Most policies also protect the homeowner against theft and liability, should someone be injured on the property.
Escrow: An arrangement in which a neutral third party that holds the funds and documents that change hands during the selling and buying process. An escrow officer sees that items in the purchase contract are carried out and appropriate parties are paid.
Points: Finance charges paid to the lender as part of the closing costs. Each point equal one percent of the total mortgage loan. Points can be negotiable and are sometimes tied to your interest. Paying more points to get a lower interest rate may be a good idea if you plan to take a long term loan.
Mortgage insurance: Insurance the buyer carries to guarantee the lender is paid off if the borrower fails to pay on a mortgage. This is different than homeowner's insurance.
Prepayment: Making early or extra payments toward the amount borrowed. Some lenders may charge a penalty if you pay off the loan too quickly, usually in the first few years. Be sure to ask about prepayment conditions.
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