Prism Mortgage Company: What are the Available Options for You

Key Takeaways:

-Prism Mortgage Company offers a wide range of loan products and services to meet each borrower’s unique financial needs.

-Their friendly, knowledgeable loan officers are available to guide you through the process, from application to closing.

-They offer competitive rates on all our mortgage loans including conventional, FHA, VA, and USDA loans as well as Jumbo and Interest-only loan products.

Taking a home loan is a vital thing that most people do when they want to have a new home. Considering that, finding a company that will offer you the best deal is a must thing to do. With Prism Mortgage, you can achieve this as they have different loan options available for you.

In this article, we will help you learn about the Prism Mortgage Company so that you are ready if ever you want to apply to them. We will also include the loan options available and the application process that you can as a guide.

Prism Mortgage Company About

Prism Mortgage Company has already 3 decades of experience in both residential and commercial real estate.

Since the company is a member of both the GMLA (Greater Midwest Lending Association) and the National Association of Mortgage Brokers, you can be confident that they are committed to staying up-to-date in the quickly changing world of residential real estate financing. Their adherence to a strict Code of Ethics and Standards of Professional Practice allows customers to know they’re represented by an honest business.

Moreover, Prism Mortgage Company’s goal is always to meet and exceed the customer’s expectations in order to build loyalty. From the very first step of the process all the way through to meeting your housing goals, their loan officers are available and ready with answers to any questions you may have. They take great pride in being able to provide top-tier service that goes above what is expected because they understand that the customers will return to business down the line.

Prism Mortgage Company Loan Products

A home mortgage is a loan that you use to purchase a house. The loan is secured by the house, which means that if the borrower defaults on the loan, the lender can foreclose on the property and sell it in order to recoup their losses.

Home mortgages are important because they allow people to buy homes without having to pay the full price upfront. This enables more people to become homeowners, which can help to improve communities and stabilize neighborhoods.

Additionally, you can use them as a form of investment, since the value of the property typically increases over time. As a result, taking out a home mortgage can be a wise financial decision for both individuals and families.

Then, if you decide to apply for a home loan in Prism Mortgage Company, you will have the following options.

FHA Loans

The Federal Housing Administration (FHA) guarantees repayment on mortgage loans, making them available to both single-family and multifamily home buyers. Because the FHA covers default, banks can issue these types of loans with less risk and capital requirements.

The FHA loan is a way for people to buy a home who might not ordinarily be able to via a conventional mortgage. These loans have fewer requirements in regard to credit and income, as well as low minimum down payments. This makes them ideal for first-time home buyers.

VA Loans

The VA Loan is a home loan that is federally guaranteed and requires no down payment. This program helps veterans with housing and their families and turned the dream of homeownership into reality for millions of veterans.

The Veterans Administration offers insurance to lenders in case the borrower defaults on their loan. Because the mortgage is guaranteed, lenders will offer more favorable interest rates and terms than a conventional home loan. The main advantage of it is that borrowers are not required to make a down payment when purchasing a home.

Moreover, this loan may have low or no closing costs, as well as reduced interest rates. Also, there are services to help veterans who might default on their loans. Service members who have served 181 days during peacetime or 90 days during war, or spouses of servicemen killed or MIA are eligible for a VA home loan.

Fixed-Rate Mortgages

The most prevalent type of loan program is the fixed-rate mortgage, where monthly principal and interest payments stay constant over the life of the loan. You can find these mortgages in terms from 10 to 30 years, and you don’t have to pay any penalty if you want to pay it off early. This kind of mortgage is designed so that it will be completely paid off by the end of its term.

Also, there are “bi-weekly” mortgages available that shorten the loan by requiring half the monthly payment every two weeks. With 52 total weeks in a year, this means you make 26 payments per year, or 13 “months” worth of payments. Even if you have a fixed-rate mortgage agreement, your monthly payment could still fluctuate depending on whether or not you have an “impound account”.

Along with your typical monthly loan fee, some lenders also collect additional funds to go towards the prorated price of things like property taxes and homeowners insurance. This is usually from people who put less than 20% down when initially buying their home.

Furthermore, the extra money from your mortgage is put into an impound account by the lender in order to pay for things like the borrower’s property taxes and homeowners insurance premiums. If there are any changes with either the property tax or insurance, then they will adjust also the monthly payment. Even though there might be slight changes each month, the payments for a fixed-rate mortgage are always stable and predictable.

Adjustable Rate Mortgages

An Adjustable Rate Mortgage, or ARM loan, is a type of mortgage where the interest rate can fluctuate over time. These loans usually have a set period in the beginning with a fixed interest rate before becoming variable based on market conditions. With an initial lower-than-average rate compared to other types of mortgages, it allows buyers to purchase homes that they may not have been able to otherwise.

In addition, an ARM is calculated over 30 years, with the option of a fixed interest rate for 1 month to 10 years. The margin and index are usually what an ARM loan depends on and can differ from case to case. For example, if it’s a 1-Year Treasury Security or LIBOR (London Interbank Offered Rate), the margin would be lower than usual at around 1.75%. However, If it was something like Prime or a 6-Month Certificate of Deposit (CD), then the margin could go up as high as 3.5%.

Besides, these loans have a unique feature- you can convert the loan from an adjustable rate to a fixed one. Though there is often only a small charge for conversion, it’s likely that the conversion rate will be higher than what market rates are at the time of refinancing.

Jumbo Loans

A jumbo loan is an expensive, non-conventional loan that agencies like FHLMC and FNMA won’t buy or trade. When a lender offers a mortgage, they usually sell it on the secondary market to make back the money sooner.

To free up cash or to gain liquidity for more business, most lenders prefer to sell mortgage obligations to these two powerful institutions in the mortgage market. Yet because a jumbo loan doesn’t qualify for Fannie Mae and Freddie Mac guidelines, borrowers normally have to pay extra money as compensation for the increased risk the lender is taking on by financing it.

To add on, this type of loan helps people to buy extravagant homes or more reasonably priced residences in prime locations. Brexit has caused housing prices all over America to boost, so now many people of regular means require jumbo loan financing just to purchase an average home.

Interest-Only

If a monthly mortgage payment only covers the interest and not the principal, it’s called an interest-only loan. These types of loans are available on fixed-rate, adjustable-rate mortgages, and option ARMs. Once the interest-only period is up, though, the fully amortized loan results in increased monthly payments that are larger than if you had been making payments against the full amount of the loan from day one. The longer your interest-only period lasts, the more dramatic this increase will be when it comes time to make fully amortized payments at last.

Interest-only payment option mortgages may save you money monthly, but over the 30-year term of the loan, they will actually cost more. Most borrowers repay their mortgages well before the end of 30 years, though.

Interest-only mortgages can be advantageous for borrowers who don’t have consistent incomes. If the mortgage terms allow it, these types of borrowers can make payments that go beyond just interest during more prosperous times and use that additional money to pay down the principal.

Prism Mortgage Company Loan Application Process

The loan application process at Prism Mortgage Company is simple and straightforward. Here’s a step-by-step guide:

1. Fill Out the Loan Application Form: The first step is to fill out our online mortgage loan application form which includes basic personal information, financial details, and property information. Their experts will review this information to determine your eligibility.

2. Submit Supporting Documents: After filling out your file, you will need to submit supporting documents such as pay stubs, bank statements, tax returns, and other items that verify your income and credit history.

3. Pre-Approval/Underwriting Process: Once they review your application and supporting documents, they will perform a pre-approval or an underwriting process to determine eligibility and loan terms.

4. Loan Approval: After approving your application, they will generate the loan paperwork which includes all of the details regarding interest rate, repayment term, closing costs, etc.

5. Closing Process: Lastly, you will need to sign the loan documents and provide all necessary closing costs. Then, they will release funds for your loan.

Final Thoughts on Prism Mortgage Company

Prism Mortgage Company strives to make the loan application process as straightforward and stress-free as possible. Their loan experts are always available to answer any questions you may have regarding the process and provide guidance throughout.

Whether you need a conventional mortgage loan, a traditional loan, or a jumbo loan for your dream home, they can help. Contact the company if you decide for taking a loan from them.

FAQs about Prism Mortgage Company

Q: Why you should choose Prism Mortgage Company?

A: They will partner with you to understand your current and future needs, and then work to find the loan program that fits those needs perfectly. From your initial phone call all the way through to closing, they will be by your side every step of the way. And because they believe education is key, their one goal is ensuring you understand the entire mortgage process before moving forward.

Q: How much will I need to pay for closing costs?

A: No two mortgage transactions nor properties are alike in their costs. The amount you’ll spend on your loan depends on the size of the loan and property location. As a rule of thumb, loans under conforming limits generally cost $2,500 or less. Speak with one of their mortgage professionals to find out the specific costs you will have to pay.

Q: What if my credit card is not perfect, I am still eligible for a mortgage in Prism Mortgage Company?

A: Prism Mortgage Company takes into consideration more than just your credit score. They offer plenty of programs for those with less-than-perfect credit and will work with you to find the best mortgage option that suits your needs. Even though they might not have a program that fits every borrower’s situation, they likely have something that will work for most people.

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