Home Purchases & Refinances
Kentucky Mortgage Group (KMG) is committed to helping you find the right mortgage product for your needs. We understand that every borrower is different, and we offer a variety of products to meet your individual requirements. We make the process of securing a mortgage simple and straightforward by offering you the latest in financial tools that enable you to make sound financial choices. We offer a wide variety of products for refinance, purchase, debt consolidation, home improvement, and cash out loans with the lowest rates in the industry. Specializing in Veteran, FHA, Conventional, Jumbo, and Rural Housing Loans
Kentucky Mortgage Group, LLC
Broker Nmls# 985471
12307 Old Lagrange Rd UNIT 103
Louisville KY 40245
502 314 0318 Office
502 314 0318 Cell Phone
502 805 0661 Fax
Daniel Jacob Nmls # 55396
email : djacob@kymortgagegroup.com
The real estate buying and selling process
Home Purchases & Refinances
KMG offers a variety of loan programs to meet your needs. We work with the leading lenders in the industry to provide: Fixed Rate Mortgage LoansAdjustable Rate Mortgage Loans (ARMs)Interest-Only MortgageJumbo MortgagesGovernment Sponsored Mortgages
Fixed Rate Mortgage Loans
Fixed-Rate Conventional Mortgages are the Easiest
mortgage loan for home buyers to understand. Commonly referred as the 30-Yr and 15-Yr mortgage loans, these loans have fixed interest rates and repayment amounts — the amounts never change.
Term: 30 years Maximum Amount: $417,000
ADVANTAGES
- interest rate and monthly payment amounts are fixed for the life of the loan
- homeowners can budget how much they need each month for the mortgage payment
- homeowners like the stability of a product
- homeowners can easily understand how the product works
DISADVANTAGES
- interest rates are slightly higher than ARMs and other special mortgages
- the average homeowner does not remain in the home for the full 30 years, thus paying more financing charges than with other mortgage loans
Adjustable Rate Mortgage Loans (ARMs)
ARMs Have Significantly Lower Interest Rates
than conventional fixed rate loans. ARM's adjust their rates up or down during a given period. This means that your monthly payment may go up or down during your repayment term.
Term: 30 years Maximum Amount: $417,000
ADVANTAGES
- the big advantage of ARMs is the interest rate — which can be significantly lower than 30-year fixed
- many consumers select the ARMs when they know they will only remain in the home for three of fewer years
- homeowners use the ARM when they need to qualify for larger loan amounts
- ARMs are generally assumable which is a plus when homeowners plan to sell in the near future
- ARMs rates can decrease in declining interest rate markets making your loan payment even less
- some ARMs have a convertible feature that allows the borrower to convert the ARM to a fixed-rate mortgageDISADVANTAGES
- the interest rate can fluctuate which makes it hard to budget your finances
- in rising interest rate markets, your monthly payment can increase significantly
- some ARMs allow for negative amortization — where caps prevent recovery of the full cost of the loan
- convertible features can be expensive and may charge a higher interest rate than current prevailing rates
Interest-Only Mortgage
You Pay Interest-Only Payments on Your Mortgage Loan
for the first five or seven years of your 30-yr amortized loan. No principal payment is being made. The amount you payoff when you refinance is the amount you borrowed upon closing.
ADVANTAGES
- you pay interest-only payments on your mortgage loan for the first five or seven years of your 30-yr amortized loan.
- lower monthly payments.
- you can afford your first home or a higher priced home by using interest-only loans.
- your monthly savings can be used to pay the principal or other debts.
DISADVANTAGES
- no principal being paid during the interest-only period.
- if home values decline, you could lose money.
- once the interest-only payment term expires (usually in 5-7 years), your monthly payment will increase substantially.
Jumbo Mortgages
The Loan Balance for Jumbo Loans are Above the Maximum
loan amounts established by Fannie Mae and Freddie Mac — thus jumbos are "non-conforming" loans. The interest rates on jumbo loans are generally higher than rates on conforming loans.
ADVANTAGES
- homeowners are looking to finance a home that is above the loan limits set by Fannie Mae / Freddie Mac
- most jumbos allow borrowers to select the type of mortgage loan — FIXED OR ARM LOANS.
DISADVANTAGES
- the APR is generally higher than other conforming loans
- The fixed rate can range anywhere from 0.11 to 0.77 points higher, depending on the region
- Adjustable rates are 0.01 points higher, but tend to narrow as the ARM adjusts. Many of the jumbo mortgage loans are ARMs.
Government Sponsored Mortgages
FHA, VA, and other Government Sponsored Programs
are mortgage loans made to home buyers that meet certain requirements. Generally these loan programs require less than 20% down paymentand the interest rate is typically lower.
ADVANTAGES
- these programs require less down payment than conventional loans
- interest rates on government sponsored programs are lower than conventional loans
- FHA / VA loan can be assumed under guidelines
- FHA / VA debt ratios are higher than conventional loans
- VA Loans can be issued with as little as zero down
- another advantage is that the income requirements for these programs are less stringent — both the income and debt ratios are a little higher when qualifying for a loan
DISADVANTAGES
- FHA loans limit the amount you can borrow
- FHA / VA closing costs are higher than conventional loans
- VA loan processing takes longer than conventional loans
Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $484,350 for the contiguous states, District of Columbia, and Puerto Rico or below $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $8,340. Jumbo Loans (whose maximum loan amount exceed $484,350 for the contiguous states, District of Columbia, and Puerto Rico or exceed $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors