ECC offers many different loan programs to our customers. The information below will explain how each of the most common programs work to help you determine which program is best for you. Other variations and loan programs may exist. Please contact us to determine which loan program would best fits your needs.
Conforming Loans
A government sponsored mortgage loan program, Conforming Loans have low interest rates and favorable terms. The most favorable loan terms are offered to single family residences with a maximum of 417k loan.
Conforming Loan Types:
| 30 year fixed | Most conservative loan type. Fully amortizing. Equal payments over 30 year loan term. Usually does not contain pre-payment penalty. |
| 20 year fixed | Similar to 30 year fixed, except that interest rate is usually .125% - .25% lower than comparable 30 year fixed option. |
| 15 year fixed | Similar to 30 year fixed, except that interest rate is usually .375% - .625% lower than comparable 30 year fixed option. |
| 10 year fixed | Similar to 30 year fixed, except that interest rate is usually .5% - .75% lower than comparable 30 year fixed option. |
| 10/1 ARM | Interest rate fixed for first 10 years and adjusts each year thereafter. Usually amortized on 30 year schedule. Rates fluctuate relative to 30 year fixed. |
| 7/1 ARM | Interest rate fixed for first 7 years and adjusts each year thereafter. Usually amortized on 30 year schedule. Rates are usually less than 30 year fixed. |
| 5/1 ARM | Interest rate fixed for first 5 years and adjusts each year thereafter. Usually amortized on 30 year schedule. Rates are usually less than 30 year fixed. |
| 3/1 ARM | Interest rate fixed for first 3 years and adjusts each year thereafter. Usually amortized on 30 year schedule. Rates are usually less than 30 year fixed. |
Conforming Plus
Similar to Conforming Loans, Conforming Plus Loans have less favorable loan terms and are limited to $729,850 loan amount for single family residences.
FHA:
A government insured loan program, FHA Loans have rates and loan terms comparable to Conforming Loans with low down payment requirements and relaxed credit requirements.
FHA Loan Types:
| 30 year fixed | Most conservative loan type. Fully amortizing. Equal payments over 30 year loan term. Usually does not contain pre-payment penalty. |
| 15 year fixed | Similar to 30 year fixed, except that interest rate is usually .375% - .625% lower than comparable 30 year fixed option. |
| 5/1 ARM | Interest rate fixed for first 5 years and adjusts each year thereafter. Usually amortized on 30 year schedule. Rates are usually less than 30 year fixed. |
Jumbo
Jumbo Loan amounts are above Conforming Plus limits with rates adjusted up based on credit risk and investor appetite of Jumbo Mortgage Backed Securities (MBS).
Jumbo Loan Types:
| 30 year fixed | Moderate investor appetite for 30 year fixed jumbo loans. Loan terms' favorability to consumer is commensurate with investor demand. |
| 20 year fixed | Similar to 30 year fixed Jumbo. |
| 15 year fixed | The most favorable pricing and loan terms of all Jumbo loan options. |
| 10 year fixed | Some investors offer a slight pricing benefit relative to Jumbo 15 year fixed, others do not. |
| 10/1 ARM | Moderate investor appetite for Jumbo 10/1 ARM loans. Loan terms' favorability to consumer is commensurate with investor demand. |
| 7/1 ARM | Similar to Jumbo 5/1 ARM, except that there is a pricing adjustment relaitve to Jumbo 5/1 ARM that isn consistent with investor MBS demand. |
| 5/1 ARM | Similar to Jumbo 15 year fixed. The most common of all Jumbo loan programs, with the most Jumbo MBS investor demand and favorable loan terms. |
| 3/1 ARM | Similar to Jumbo 5/1 ARM, except that there is a slight pricing benefit in most cases. |
Interest Only:
Many of the referenced loans offer an introductory period of 3-10 years where no principal is required to be paid. Rates/terms adjusted for this option.
Bridge Loans/Private Money:
Non-standardized loan scenarios and corresponding loan terms. Terms are less favorable than Conforming or Jumbo loans.
Commercial:
ARMs and Fixed Rate loans of 15 years or less are standard. Most loans have pre-payment penalties. Some loans may be non-recourse.
Home Equity Lines of Credit (HELOC):
May be used for a purchase or refinance, or 1st or 2nd mortgage. Adjustable rates. Rates, terms and availability are not as favorable in prior years.
Home Equity Loans:
Similar to HELOCs, except that only one draw may be taken for the life of the loan, and is taken at loan closing. Fixed rate options are available.
