Loan Programs

JLB Mortgage Group offers dozens of loan programs to finance your purchase, refinance, home equity line of credit, or to provide financing for the construction of your new home.

What follows on this page is information regarding traditional loan programs available from most lenders.

Please check our site regularly for additional and emerging loan programs that may better fit your needs. We are constantly seeking new Lenders that offer leading edge loan products to fit the ever changing needs of our customers.

Loan Size
Conventional	- from $0 to $417,000
Jumbo	- from $417,001 to $650,000
Super Jumbo	- from $650,001 and up

30 Year Conventional Fixed
A traditional 30 Year mortgage not insured by the FHA or guaranteed by the VA. A conventional mortgage (also known as a conforming loan) is a loan that is long term (typically 10 to 30 years) and meets the guidelines as put forth by FNMA (Federal National Mortgage Association) and FHLMC (Federal Home Loan Mortgage Corp.).

These guidelines include satisfactory types of borrowers, kinds of property, and dollar amounts of loans (currently not more than $417,000). The most common type of Conventional Mortgage is a fixed rate mortgage. Two distinct characteristics of a fixed rate loan are an interest rate that doesn't change and a loan amount that is repaid in equal monthly payments.

The most common term lengths for fixed rate mortgages are 30 years and 15 years. A 15 year term usually has a lower interest rate than a 30 year term mortgage. As a fixed rate mortgage is repaid, more interest than principal is paid in the early years of the loan. However, the longer the borrower keeps and repays the mortgage, the larger the percentage of principal is paid with each monthly payment. An amortization schedule can be used to demonstrate this.

Mortgage Insurance (MI) is required on a conventional loan if the loan-to-value is more than 80%. For example, if a borrower purchases a home for $200,000 and applies for a loan of $180,000 (90% loan-to-value), he or she will be required to pay mortgage insurance to obtain the loan. Mortgage insurance is typically paid on a monthly basis.

20 Year Conventional Fixed
A traditional 20 Year mortgage. See details of 30 year conventional mortgage.

15 Year Conventional Fixed
A traditional 15 Year mortgage.  See details of 30 year conventional mortgage.

10 Year Conventional Fixed 
A traditional 10 Year mortgage.  See details of 30 year conventional mortgage.

3/1 Conventional - Jumbo - Super Jumbo ARM
Another type of Conventional Mortgage is an Adjustable Rate Mortgage (ARM). The main difference between an ARM and a fixed rate is that an ARM has an interest rate and monthly payment that is subject to change.  An ARM has beneficial qualities that appeal to borrowers in certain situations.

An ARM is a mortgage with an interest rate that is subject to change periodically, based on an index that is determined at the time the mortgage was obtained. The interest rate may go up or down, and the monthly payments of the mortgage will adjust accordingly.

As mentioned before, there are advantages to an ARM. Usually, the beginning interest rate of an ARM is lower than a fixed rate mortgage. This can be great for someone that is going to live in his or her home for a short amount of time (usually less than 5 years). And with a lower interest rate, the loan payments are also smaller. With a smaller monthly payment, a borrower can sometimes qualify for a larger loan amount (this will depend on the lender). Some adjustable rate mortgages can be assumable. Finally, if interest rates remain steady or actually decrease an ARM can be less expensive than a fixed rate mortgage over the long term.

ARM products usually have a beginning interest rate that is fixed for a predetermined amount of time.  Most lenders/brokers offer ARM mortgages that are fixed for 1, 3, 5, 7, or even 10 years. The shorter the fixed time period, the lower the starting interest rate. These mortgages typically convert to 1 year ARM's after the first time period has passed. At that point, the interest rate would be subject to change once a year thereafter. In the case of the  3/1 ARM, the interest rate is fixed for 3 years, then adjusted every 1 year thereafter.

5/1 Conventional - Jumbo - Super Jumbo ARM
An Adjustable Rate Mortgage with a low starting interest rate as compared to a fixed rate loan.  In the case of the  5/1 ARM, the interest rate is fixed for 5 years, then adjusted every 1 year thereafter.

7/1 Conventional - Jumbo - Super Jumbo ARM
An Adjustable Rate Mortgage with a low starting interest rate as compared to a fixed rate loan.  In the case of the  7/1 ARM, the interest rate is fixed for 7 years, then adjusted every 1 year thereafter.

Balloon Conventional Mortgage

One last type of conventional mortgage is the balloon mortgage. This type of mortgage has a fixed interest rate, but at some point requires the borrower(s) to make a final lump sum payment.

Usually, a balloon mortgage has a fixed interest rate and monthly payments are based on a 30 year fixed payment schedule. However, the actual term of the loan is shorter than the 30 year payment schedule. Most balloons have a 5 year term or a 7 year term. At the end of the 5 or 7 years, the loan is due and payable in a lump sum. Most balloon mortgages include an option to refinance the loan at the end of the 5 or 7 years.

A borrower might choose this type of mortgage if he or she plans on living in the home a short amount of time and does not plan on needing a mortgage for 15 or 30 years. Therefore, the borrower would want to take advantage of the lower interest rates offered with a balloon mortgage.

Balloon and adjustable rate mortgages offer lower introductory rates and greater flexibility than fixed rate mortgages. Depending on each borrower's situation, either of these products might provide the right combination of factors.

30 Year Jumbo - Super Jumbo Fixed 
A loan which is larger (more than $417,000 as of January 2006) than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate. This loan has a 30 year term.

15 Year Jumbo - Super Jumbo Fixed 
A loan which is larger (more than $417,000 as of January 2006) than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate. This loan has a 15 year term.

VA 30 Year Fixed
A 30 year, low-or no-down payment loan guaranteed by the Veterans Administration.  A VA mortgage can be obtained through a local lender/broker, and similar to a FHA mortgage, it is guaranteed by a government agency, the Veterans Administration.

Unlike any other mortgage programs described, only eligible veterans that have served in the armed forces (as defined by VA) can obtain a VA loan.

One feature of a VA loan is the ability of an eligible veteran to finance up to 100% of the purchase price of a property. The veteran can also add the VA funding fee to the purchase price, thus lowering the amount of cash the borrower needs to purchase a home. The VA funding fee is a fee charged by the Veterans Administration to insure the payment of the mortgage. The funding fee is usually 2% of the purchase price, but varies depending on the amount of times the veteran has previously purchased a home using the VA mortgage program.

Construction Permanent Mortgage
A Construction Permanent (CP) loan finances the land, land improvements (such as clearing, grading, utilities, driveway, etc.), actual construction costs, finishes in the home (such as carpeting, appliances, etc.), architects and engineers fees, permit fees, and closing costs on the transaction.  The buyer can close a construction loan and the final mortgage at the same time, before construction on the home begins.

A one-time-close construction permanent loan seamlessly converts to a permanent mortgage when the home is finished.  So, you can finance the turn-key cost of building your new home and effortlessly convert to a permanent mortgage when your home is finished with just one set of closing costs.

As the builder construction continues, you can take periodic draws of additional funds to make progress payments to the builder.  Monthly interest payments during construction are based on funds disbursed to builder.  Financing programs available include a 3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM, 15 Year Fixed, and 30 Year Fixed.

Construction Perm loans are available from JLB Mortgage Group up to 95% LTV (even on Jumbo and Super Jumbo loan amounts!) using an innovative Combo Loan program.

The interest rate on Construction Perm loans can be fixed at the initial closing or during construction.  When the home is finished, and occupancy is possible, the loan can convert to a Fixed or Adjustable Rate Mortgage for the number of years you select.