Conventional Loan Programs
CharterWest offers many loan products to meet your needs. Loan programs change often, but our knowledgeable staff can review the many options with you.
Conventional loans offer the benefits of combining first and second mortgage financing to meet the minimum down payment requirements. Fixed rate, adjustable rate, and balloon programs are available with flexible terms. With our automated underwriting technology and loans requiring little documentation, we can offer loan approval in minutes, not days!
Fixed Rate Mortgage
The most common type of mortgage program is one where your monthly payments for interest and principal never change. Property taxes and homeowner’s insurance may increase, but generally your monthly payments will be very stable.
Fixed rate mortgages are available with many convenient term options.
Fixed rate, fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Second, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term.
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 the principal.
Adjustable Rate Mortgage ( ARM )
These loans generally begin with an interest rate that is 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 could drop.
Balloon loans are short-term mortgages that have some features of a fixed rate mortgage. The loans provide a level payment feature during the term of the loan. Balloon loans can have many types of maturities.
At the end of the loan term, there is still a remaining principal loan balance, and the terms generally require that the loan be paid in full, which can be accomplished by refinancing. Many companies have other options, such as a conversion feature at the end of the term.