Types of Loans

“One size fits” all may work for some things: hats, clothes, cars, but certainly not your mortgage. Choosing the right mortgage depends on many things, your income, your present cash availability and your home buying needs. That is why GMAC mortgage offers you a choice when the time comes to obtain a mortgage. We offer three types of mortgages with three very different purposes.

The first is a Fixed Rate Mortgage. A fixed rate mortgage is perfect for someone who is looking at buying a property they intend on living in for 10 years or more. The payments with a fixed rate mortgage are just that – fixed. The payment decided upon in your contract is what you will pay for the life of the loan, whether interest rates go up or down. So your monthly payments and interest payments always remain the same. This gives you a peace of mind and the ability to always know what you are spending on your mortgage.

The second type of mortgage we offer is the Adjustable Rate Mortgage. Adjustable rate mortgages are for those people who want to spend less money up front. These mortgages begin with an introductory period of fixed low rates. This can last from one year to ten years, at the discretion of the buyer. Once your introductory period is up though, your rates are dictated by the state of the market. This type of mortgage is ideal for someone who does not plan on being in his or her home for an extended period of time.

The third type of mortgage available from GMAC is the Balloon Mortgage. This type of mortgage is the right loan for someone who plans on living in his or her home for longer than four years or someone who wants to make a short-term investment and then sell the home. A balloon mortgage begins with a low rate intro period. Once this introductory period is over, the remainder of the loan is paid in full. At this time the homeowner can either pay off the loan or refinance at a lower rate.