Platinum Mortgage, Inc. - Loan Programs

There isn't a single or simple answer to this question. The right type of mortgage for you depends on many different factors:

  • Your current financial picture
  • How you expect your finances to change
  • How long you intend to keep your house
  • How comfortable you are with your mortgage payment changing

For example, a 15-year fixed rate mortgage can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher. An adjustable rate mortgage may get you started with a lower monthly payment than a fixed rate mortgage, but your payments could get higher when the interest rate changes.

The best way to find the "right" answer is to discuss your finances, your plans and financial prospects, and your preferences frankly with a mortgage professional.

Our Mortgage Programs

Conventional Loans

A mortgage conventional loan is a lender agreement that's not guaranteed or insured by the federal government under the Veterans Administration (VA) the Federal Housing Administration (FHA), or the Rural Housing Service (RHS) of the U.S. Department of Agriculture. Although a conventional loan is not insured or guaranteed by the government, it can still follow the guidelines of government sponsored enterprises (GSE's) such as Fannie Mae or Freddie Mac as both Fannie Mae and Freddie Mac are stockholder-owned corporations and are not part of the federal government.

Conventional Loan History

At one point in the United States, conventional loans were the only mortgage loans available and they were all issued by local lenders such as banks, savings and loans, and credit unions. These private lenders kept and serviced these loans in their own portfolio until they were either paid in full or foreclosed on.

In the late 1930's, a secondary market was created which allowed these local lenders to sell their loans, getting the full payment much more quickly. Then, the organizations that purchased the loans owned the agreement and collected payments from the borrower. Today it is very common for lenders to sell their loans on the secondary market.

Types of Conventional Loans

Conventional loans may be "conforming" and "non-conforming". Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. The 2009 conforming loan limits remain at the limits set in 2006, 2007 and 2008. These guidelines put the maximum price for a first mortgage at $417,000 for a single-family dwelling. If the purchase is made outside of the 48 contiguous United States (in Guam, the Virgin Islands, Hawaii, or Alaska), or the dwelling is for a two-family, three-family, or four-family configuration, larger values apply before the loan is no longer considered a conventional loan.

Nonconforming loans don't meet Fannie Mae or Freddie Mac qualifications, but that are still considered conventional. Jumbo loans are one example of a conventional loan that does not meet Fannie Mae or Freddie Mac guidelines. A jumbo loan is a loan with a dollar value above the maximum loan amount established by Fannie or Freddie. Jumbo loans usually have a higher interest rate.

Conventional loans can be fixed rate mortgages, adjustable rate mortgages, balloon mortgages, or hybrid loans. Almost any type of loan that you take, if not issued by a government entity, is considered a conventional loan.

Conventional loans are secured by government sponsored entities or GSEs such as Fannie Mae and Freddie Mac. Conventional loans can be made to purchase or refinance homes with first and second mortgages on single family to four family homes.

In general, Fannie Mae and Freddie Mac's single family, first mortgage loan limit is $417,000 in 2006. This limit is reviewed annually and, if needed, changed to reflect changes in the national average price for single family homes.

Conventional Loan Limits

First mortgages

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

Note: Maximum original loan amounts are 50 percent higher for first mortgages on properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands.

Fixed Rate Mortgage

If you're like most people, paying a mortgage is something you're probably going to end up doing for a very long time. That's why when it comes to your mortgage, your safest bet may be to lock in a rate that won't come with any hidden surprises. At Platinum Mortgage, we offer some of the most competitive fixed rate mortgages in Madison, AL. Whether you're looking for a 15-year loan or a 30-year loan, a fixed rate mortgage could be your ticket to financial stability in a world of economic uncertainty.

Helping You Through the Process

When you enlist the services of Platinum Mortgage, a dedicated professional will thoroughly evaluate your financial circumstances to help you qualify for a fixed rate mortgage loan that works within your budget. Our goal is to get you the most favorable rate available, all the while working to answer your questions and make the application process as smooth and simple as can be.

Your home is one of the greatest investments you'll ever make, so don't take chances with your mortgage. Contact Platinum Mortgage today to lock in a fixed rate loan, and take a load off your mind for the long haul.

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Fixed Rate Mortgages are the most common type of mortgage program where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable.

Fixed rate mortgages are available for 30 years, 20 years, 15 years and even 10 years.

Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.

During the early amortization period, a large percentage of the monthly payment is used for paying the interest. As the loan is paid down, more of the monthly payment is applied to principal. A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.

Adjustable Rate Mortgage (ARM)

Looking for a low monthly payment and an amazing introductory interest rate? An adjustable rate mortgage may be perfect for you. For the right borrower, an adjustable rate mortgage (ARM) offers a number of benefits over a fixed rate mortgage, and a low monthly payment is just one of them. At Platinum Mortgage in Madison, AL, we offer several ARM programs designed to help you manage your expenses in the short term and achieve your financial goals – both now and in the future.

At Your Service

When you call Platinum Mortgage, you can expect friendly, professional advice and clear explanations of all of our available mortgage products, including our ARMs. Our mortgage specialists can walk you through the advantages and risks associated with each option and provide the guidance you need to help you make the right decision. 

With an ARM from Platinum Mortgage, you’ll be able to get a lower payment up front, increase your short-term cash flow, and receive the attentive, personalized service we’re known for. Give us a call today for more information.

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These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and could allow you to buy a more expensive home.

However, the interest rate changes at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up, too. However, if rates go down, your mortgage payment will drop also.

There are also mortgages that combine aspects of fixed and adjustable rate mortgages - starting at a low fixed rate for seven to ten years, for example, then adjusting to market conditions. Ask your mortgage professional about these and other special kinds of mortgages that fit your specific financial situation.

First Time Home Buyer

For the first-time homebuyer, navigating the complex waters of securing a mortgage can be a daunting experience. At Platinum Mortgage in Madison, AL, we understand what an exciting time it is for you. But we also understand that buying a home can be a complicated and confusing process. That’s why we work hand-in-hand with you every step of the way and provide you with exactly what you need from your lender: our time and attention.

Here to Help

As a first-time borrower, you need solid advice and personalized service. Our friendly, professional mortgage specialists will walk you patiently through your options, work through all of your questions and concerns, and provide you with the information you need to choose the right mortgage for you. Platinum Mortgage’s commitment to meticulous service means you can count on us every step of the way.

At Platinum Mortgage, we love nothing more than helping responsible first-time buyers like you experience the benefits of home ownership. For more information about our services or to apply for a first mortgage loan, call us today.

FHA Mortgage Loan

Looking to buy a home or refinance with a low down payment? A loan backed by the Federal Housing Administration (FHA) may be the answer. At Platinum Mortgage, we understand the challenges facing today’s home buyers in Madison, AL, and we work hard to make home ownership possible for responsible borrowers like you. With an FHA loan from Platinum Mortgage, you benefit from less stringent qualification requirements, your choice of a fixed-rate or ARM product, and the security that comes with a government-insured loan.

Here to Serve You

When you call Platinum Mortgage, you’ll receive attentive service and expert guidance from an FHA loan expert. We’ll determine whether you qualify for an FHA loan and quickly set the wheels in motion; and our no-hassle application process is designed to make securing your approval fast and worry-free.

An FHA loan may be exactly what you need to finally shop for your dream home with confidence. Call Platinum Mortgage today for more information or to schedule an appointment.

Why Should i Consider an FHA Loan?

There are plenty of reasons to consider an FHA loan. What are the advantages to applying for an FHA home loan instead of a conventional mortgage? Why apply with the FHA?

FHA insured home loans can be used for a variety of properties and purposes. Those who apply and qualify for FHA loans can purchase a home for up to four families, a condo or even a “manufactured home” on a permanent foundation.

Some mistakenly believe there is a maximum income limit on FHA loans, which may disqualify them from applying, but this is not true. While some down payment assistance programs or secondary financing programs associated with FHA loans may have income limits, the basic eligibility requirements have MINIMUM income guidelines, not maximums.

FHA loans are an excellent choice for those with less than perfect credit. The FHA guarantees the home loan, making it more attractive for a lender to work with you. FHA loans have lower down payments than other types of loans; do some comparison shopping with FHA loans and conventional mortgages and you’ll soon learn how an FHA home loan could work to your advantage in the right circumstances.

Because an FHA mortgage is insured by the government, the loans are often more competitive but it’s important to know the government does NOT set the interest rates on FHA home loans—to get the best value you should shop around for the right lender and the right interest rate before settling on a particular loan.

There are other reasons to consider an FHA mortgage aside from the initial credit and cost issues; the FHA has a history of working on the homeowner’s behalf. From foreclosure avoidance programs such as HOPE For Homeowners and the Making Home Affordable program to natural disaster relief for FHA borrowers in crisis, the FHA is clearly interested in helping those who take FHA mortgages keep the homes they buy.

Veteran Administration (VA) Mortgage Loans

With less than perfect credit, your options for a home loan in Madison, AL may be limited. But if you’ve served in the military, you may qualify for quick approval and a low down payment with a Veterans Administration Loan. 

You Served Us; Now We're Here to Serve You

At Platinum Mortgage, our goal is to help make your dream of home ownership come true. Our dedicated, professional mortgage specialists appreciate the fact that you served our country, and now we want to help you overcome the obstacles you're facing so that you can become a homeowner. We've streamlined our application process to make it easier than ever to get approved. And our dedication to customer service means you can count on us when it really matters.

With the expertise to find you the best possible loan, and the experience to help you make the right decisions for your budget, Platinum Mortgage takes the fear and confusion out of securing your loan. To find out if you qualify, call to speak with a VA loan expert at Platinum Mortgage today.

VA Loan Eligibility

How do I apply for a VA guaranteed loan?

You can apply for a VA loan at any mortgage company that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the mortgage company that you are eligible for a VA loan.

How do I get a Certificate of Eligibility?

To get a Certificate of Eligibility, you need to submit form 26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement. A copy of the form can be obtained by calling 800-827-1000. Send it to any VA Regional Office. You must include a copy of your DD-214 with the form 26-1880. If you are on active duty, you must submit a statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing date of entry on your current active duty period and the duration of any time lost.

I have already received one VA loan. Can I get another one?

Yes, depending on the circumstances. If you have paid off your prior VA loan and disposed of the property, you can have your entitlement restored for additional use. To obtain restoration of entitlement, you must send VA a completed VA Form 26-1880, along with evidence that the property has been disposed of and the loan repaid in full. This evidence can be in the form of a payoff statement from the former mortgage company, or a copy of the HUD-1 settlement statement completed in connection with the sale of the property. The application can be presented to any VA Regional Office. A veteran can also obtain restoration of entitlement, on a one time basis, if the prior VA loan has been paid in full but the property has not been sold.

I have sold the property I obtained with my prior VA loan on an assumption. Why can't I get my entitlement restored to purchase a new home?

In this case your entitlement can be restored only if the assumer is also an eligible veteran who is willing to substitute his or her entitlement for that of your original entitlement. Otherwise, you cannot have entitlement restored until the assumer has paid off the VA loan.

My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the mortgage company. VA said it wasn't my fault and waived the debt. Now I need a new VA loan but am told that I am not eligible. Why not? or My prior loan was foreclosed on, or I gave a Deed in Lieu of Foreclosure, or VA paid a compromise claim. I was released from liability on the loan and/or the debt was waived. Can I get another VA loan?

Although your debt was waived by VA, the Government has still suffered a loss on the loan. The law does not permit your entitlement to be restored until the loss has been repaid in full.