Here at TPC Group, we encourage you to speak directly with our experienced staff in order to obtain the best possible program that fits your needs. We offer a variety of programs, and work with the leading lenders in the industry to provide you with the best service.

The right loan program can save you hundreds of dollars per month, or cost you thousands over the life of the loan. We are committed to educating its clientele on the pros and cons of each program.

If you have further questions, please contact us. Se Habla Español.

 

Fixed Rate Mortgage
A fixed rate mortgage indicates that your mortgage interest rate remains the same for the specified term, typically 15 or 30 years. The principal and interest payments do not change throughout the life of the loan. When interest rates increase, your mortgage will not change. Thirty-year loans allow you to make a lower monthly payment than a 15-year loan, this indicates that a much larger percentage of early payments are interest payments. Take a moment to calculate the difference of a 30 year note to a 15 year note.

 

ARM - Adjustable Rate Mortgage
An adjustable rate mortgage means your mortgage interest rate will change after a specific period of time. When interest rates increase, your mortgage will increase. Conversely, when rates decrease, your payments will decrease. Typically, an ARM may not increase or decrease more than a few percentage points, based on a predetermined cap. Because ARM rates are generally lower the first few years, you may qualify for a larger, more expensive home than you might expect. There are several different indices used in ARM products. Among the most widely offered are Prime-plus programs, mta indexing, and the LIBOR indexed ARM.

 

Interest-only First Mortgage Note
An interest first mortgage means you do not pay the principal portion of the loan for a specific period of time. With an ARM or fixed rate mortgage, your monthly payment is divided between principal and interest. However, with an interest-only mortgage, your payment is lower because you're not paying the principal portion. You can still build equity as your home's value increases. If you don't plan to live in your home very long or you anticipate your income will increase soon, an interest only mortgage may be a great choice.

 

Home Equity Line of Credit
A home equity line of credit is typically an addition to any first mortgage on your home. If you need to finance more than 80% of your home value, you may want to have both a line of credit and a first mortgage. This way, you can eliminate the need to pay mortgage insurance, otherwise required when you finance more than 80% of your home price. A line of credit is also a great way to help you finance a new home before your old home sells. When you sell your old home, you can use your equity to pay off the line of credit loan. A line of credit has an adjustable rate, is interest only for the first ten years, and must be paid off in twenty years. Because the interest is often tax deductible, it is a far better value than paying mortgage insurance; which is not tax deductible.

This loan product is mostly used for debt consolidation purposes. Some reasons for choosing an equity line of credit:

  • Short-term investing in stocks, mutual funds, etc.
  • Down payment on a rental property
  • Start-up funds for small business
  • And more...
 
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