Mortgage Programs

Libor Rate Jumbo & Libor Rate Super Jumbo Loans

Have you ever wondered why they gave this name to certain loan amounts? Well it starts with the obvious, the loan size. Libor Rate Jumbo loans start at $417,000 and go up to $650,000. Libor Rate SuperJumbo loans start at $650,000 and go up from there. For many Libor Rate lenders it has long been what they feel is a right to quote higher rates and fees because of the higher Libor Rate loan amounts. Not only are the rates higher but the loan to values are lower and the over all guidelines are more strict for Jumbo and Super Jumbo Libor Rate Loans.

For a select few Libor lenders and professional loan consultants it has now become a way to build a national referral base and long term loyal repeat customers who feel they have long been taken advantage of because of their financial status.

Union Capital of America’s mortgage in Denver, CO (303) 495-5655 has spent many long hours interviewing these professionals so you will have access to Libor lenders that specialize in Jumbo & Super Jumbo Libor loans. You can rest assured you will be contacted by one top Libor mortgage professional from a company that has demonstrated the ability to give you the most competitive Libor rate quotes on all Libor loan products in the industry today.

After surveying thousands of frustrated borrowers that visited numerous other online lender sites, one of the top complaints was that they were overwhelmed by numerous phone calls and emails from many lenders that could not answer common Interest-Only Libor loan questions regarding the different Jumbo Libor loan products, margins & related Libor Rate indices, or index options such as MTA, COFI and, how the overall Libor Rate Loan products worked in general.

There are many different Interest-Only Loan ARM programs available today. There are also numerous indices to choose from. Some products like the 3, 5, & 7/1 Libor Rtate ARM’S have different 1st adjustment & lifetime caps, some are libor based and others are treasury. The 1 & 6 month I/O ARM’S are usually libor based. The pay-option ARM is also gaining popularity; they offer 4 different payment options every month including an Interest-Only payment option. There is however a possibility of negative amortization or deferred interest so you must make an informed decision before moving forward on this product.

It takes a seasoned professional who specializes in Interest-Only Loan Libor products to explain every loan in detail. We have spent countless hours interviewing these professionals so you won’t have to.

Products - Libor Loans and Interest Only Libor Loans

Libor rate home mortgage loans offer consumers greater purchasing power, increased cash flow and a number of other benefits. Libor Loans have either a fixed rate or adjustable rate and are available with the interest-only option or the fully amortized product. These loans may not be for everyone, but you should not assume the worst for these loans as they can be extremely beneficial to the people they are tailored for. The Libor mortgage market has a number of Libor loan programs available to consumers and below is a list of some of the most popular types of libor loans:

ONE MONTH LIBOR RATE ARM LOANS - LIBOR LOANS with INTEREST-ONLY MORTGAGE OPTION

The interest rate on these libor mortgage rate loans is the sum of the LIBOR index plus a margin rounded to the nearest 1/8 of a percentage point, (0.125%). The Libor margin will not change for the term of these libor loans. The Libor index value is adjusted every month, which will cause the interest rate of these libor loans to be adjusted every month.

SIX MONTH LIBOR RATE ARM LOANS - LIBOR LOANS with INTEREST-ONLY MORTGAGE OPTION

The interest rate on these libor mortgage loans is the sum of the LIBOR index plus a margin rounded to the nearest 1/8 of a percentage point, (0.125%). The Libor margin will not change for the term of these libor loans. The Libor index value is adjusted every 6 months, which will cause the interest rate of these libor loans to be adjusted every 6 months.

3 YEAR LIBOR RATE ARM LOANS - LIBOR LOANS with INTEREST-ONLY MORTGAGE OPTION

The interest rate on these Libor Loans is fixed for the 3 years of the loan term and you are only required to pay the interest. Years 4 thru 30 will see the adjustment of the interest rate every year equaling the sum of the LIBOR index plus the margin rounded to the nearest 1/8 of one percentage point, (0.125%). The margin NOT changing throughout the term of these Libor Loans. Years 4 thru 30 will require a principal and interest payment for most libor loans.

5 YEAR LIBOR RATE ARM LOANS - LIBOR LOANS with INTEREST-ONLY MORTGAGE OPTION

The interest rate on these Libor Loans is fixed for the 5 years of the loan term and you are only required to pay the interest. Years 6 thru 30 will see the adjustment of the interest rate every year equaling the sum of the LIBOR index plus the margin rounded to the nearest 1/8 of one percentage point, (0.125%). The margin NOT changing throughout the term of these Libor Loans. Years 6 thru 30 will require a principal and interest payment for most libor loans.

7 YEAR LIBOR RATE ARM - LIBOR LOANS with INTEREST-ONLY MORTGAGE OPTION

The interest rate on these Libor Loans is fixed for the 7 years of the loan term and you are only required to pay the interest. Years 8 thru 30 will see the adjustment of the interest rate every year equaling the sum of the LIBOR index plus the margin rounded to the nearest 1/8 of one percentage point, (0.125%). The margin NOT changing throughout the term of these Libor Loans. Years 8 thru 30 will require a principal and interest payment for most libor loans.

10 YEAR LIBOR RATE ARM - LIBOR LOANS with INTEREST-ONLY MORTGAGE OPTION

The interest rate on these Colorado Libor Loans is fixed for the 10 years of the loan term and you are only required to pay the interest. Years 11 thru 30 will see the adjustment of the interest rate every year equaling the sum of the LIBOR index plus the margin rounded to the nearest 1/8 of one percentage point, (0.125%). The margin NOT changing throughout the term of these Libor Loans. Years 11 thru 30 will require a principal and interest payment for most libor loans.

10/30 YEAR INTEREST-ONLY ARM LOANS

* The initial payments are interest only for thefirst 10 years of these loans.
* After the completion of the interest only loan period, the unpaid mortgage balance is fully amortized over the remaining term of the loans.
* The Borrower may make voluntary principal payments during the interest only loan period. The required interest only payment will be reduced to reflect the decrease in the principal unpaid loan balance.

Option Arm Products - Colorado Option Arm Refinance - Option Arm Purchase

This is a great product with a lot of flexibility and payment choices. The increasing popularity of these loans lead us to suggest you contact a knowlegeable loan professional to go over all of the features these products offer. Research these creative options.

Welcome to Pay Option Arms!

Through years of mortgage and real estate experience it has become more apparent to a lot of people that the appreciation and tax benefits of real estate is where financial wealth comes from and not so much as to how much principal balance someone pays down on a mortgage. Real Estate has skyrocketed over the last 25 years and it has become harder for families to realize the dream of owning a home. Libor loans not only help you qualify for more home they will allow you options that amortizing loans don’t.
The national average that most people stay in a home is between 5 & 7 years, why on earth would you take an amortizing 30 year fixed rate loan, we know, because your parents did and their parents did and so on. Let us try to give you some insight on how Libor loans can signifantly change your cash flow position, its important to understand that we are in no way telling you that you will be saving money, we are explaining with Libor Loans you will have options and can decide for yourself how to use the principal portion of your payment.

Here is an example of a $500,000 loan comparing a 30 year fixed rate mortgage to a 5/1 ARM Interest Only Libor Loan, assuming you will move in 5 years, again the caveat is if you don’t move you will be subject to the rates five years from now and you may want to refinance, we will take that into consideration also. The rates quoted below are in no way an offer of a mortgage, it is pure speculation of a scenario that could happen.

500K 30 year fixed rate jumbo mortgage loan @ 5.875% - payment $2,957.69 per month for 30 years. Your principal balance will be $464,547.20 after 5 years; you paid down $35,453.00 or just 7% of the total loan balance in 5 years.

500K 5/1 ARM Interest Only Libor Loan @ 5% - payment $2,083.33 per month for 5 years. This is $874.36 a month cash flow position or $52,461.60 in 5 years that you have created for yourself.

This is a typical scenario of what we see in the industry today. You benefit not only because your interest rate is lower but you also have the option to decide what you want to do with the principal portion of your payment, college tuition maybe, pay down some credit cards, you decide. With Colorado families struggling to make ends meet today or the financial expert that wants to have additional options to use and invest their money in other areas, these libor loans benefit both.

Okay lets look a the possible down side. Five years from now you decide you aren’t going to move and assuming rates have moved higher, let’s look a possible scenario.

500K loan, if you took the 30 year fixed rate jumbo @ 5.875% you would still be paying $2,957.69 per month.

Its five years later and rates have move up to where they were a number of years ago, you might be looking at this scenario. The average closing cost for a refinance excluding escrows is about $4,000.00; this can normally be added to your loan amount.

504K Fixed Rate Jumbo Loan @ 7.50% - payment $3,524.04

504K 5/1 ARM Interest Only @ 6.50% - payment $2,730.00

The payment of $2,730.00 per month on the new 5/1 ARM Interest Only mortgage at the higher rate of 6.50% is still $257.69 per month less than the original mortgage payment of $2,957.69 at 5.875% 30 year fixed. This is an additional $15,461.40 in cash flow for another 5 years. In fact if rates moved to 7% on the 5/1 arm your payments would be $2,940.00 per month still below the fixed rate payment.

These are hypothetical examples but let’s look at the bottom line if these figures were even close to being true. Five years later and you decide to sell your home. Assuming you bought the home for $625,000 and put 20% down to give you a $500,000 mortgage and using a moderate appreciation of home values of 4% per year your home should be worth about $750,000.

30 year fixed scenario: Sold for $750,000, present loan balance of $464,547.20. Realized gain in appreciation is $125,000 along with you’re principal that you paid down $35,452.80 for a total of $160,452.80 at closing.

5/1 ARM Interest Only Libor Loan scenario: Sold for $750,000, present loan balance is $500,000. Realized gain in appreciation is $125,000 adding the cash flow balance of $55,584.40 that you used however you wanted your total net would be $180,584.40. Not only did you save money by going with an interest only Libor Loan at a lower rate you were able to use the principal balance portion as you wanted. Serving Denver need for Libor loans.