Financing

Building a new home, or adding value to an existing home, is often one of the largest investments an individual will make in their lifetime. Ace Builders can provide the the necessary guidance to connect our clients with the financial tools necessary to complete your project. We have provided a list of common mortgage products below.

Fixed Rate Mortgage

• The interest rate on a fixed rate mortgage remains the same over the term of the loan.
• Your monthly principal and interest payment will never change throughout the life of the loan.

Adjustable Rate Mortgage (ARM)

• The interest rate on an Adjustable Rate Mortgage (ARM) fluctuates over the term of the loan.
• The interest rate can change yearly, bi-yearly, or monthly depending on the type of ARM mortgage you have.
  • ARM
    A traditional ARM adjusts for the same periods for the life of the loan. For example, a 6 Month ARM is fixed for the first six months and adjusts every six months afterwards. A traditional ARM usually offers a lower interest rate than a hybrid ARM but it adjusts more quickly.
  • Hybrid ARM
    A Hybrid ARM has an initial "fixed" period of 3, 5, 7 or even 10 years, during which time the interest rate does not change, regardless of what the underlying index may do. After the initial fixed period is over, the interest will adjusted periodically to follow the market. The adjustment period is usually 6 months or 1 year. For example, a 5/1 hybrid ARM functions as a fixed-rate mortgage for 5 years and after that the rate adjusts every year.

Conventional Mortgage

Conventional mortgages are mortgages that are not obtained under a government insured or guaranteed program such as the Federal Housing Authority (FHA) or Veterans Administration (VA).

FHA Mortgage

A Federal Housing Authority (FHA) insured loan allows you to buy a home with a down payment as low as 3% of the purchase price. This may provide you with more buying power. VA Mortgage

If you are currently in the United States military, or if you have ever served in U.S. armed forces, you may be eligible to get a loan guaranteed by the Veterans Administration (VA). If you qualify, this special government benefit to veterans might be a good option for you as it allows you to purchase a home with little or no down payment.

Balloon Mortgage

Principal and interest payments remain constant for the term of a balloon mortgage, which is usually five to seven years, although principal and interest are amortized over 30 years.

Bridge Loan

A form of second loan that is collateralized by the borrowers present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold.