Lone Star Mortgage Solutions
 Proudly Providing Texans with Purchase, Home Equity, and Refinance Loans

 

 

 

Lone Star Mortgage Solutions offers a complete line of sought-after loan programs. We pride ourselves on finding the right loan to meet your specific needs.

One of the first questions many customers ask is, "What is your interest rate?"  To entice them into making an application, many mortgage companies will immediately quote an extremely low rate that is achievable only in a very limited circumstances, only to disappoint the borrower when they are ultimately unable to deliver this quoted rate.

We fully appreciate the importance of interest rates to our customers.  We also understand that the interest rate is only one element of a loan transaction and that, in some instances, the low interest rate quoted by our competition is compensated for by unusually high or unnecessary fees or is tied to loan program that is illsuited to the borrower's needs.  As we pride ourselves on understanding the uniqueness of your situation, we will only quote you a rate after fully understanding your needs.

Instead, we believe that we can best provide you with a fair and realistic rate quote by putting you in contact with one of our mortgage professionals, all of whom are trained to evaluate your specific circumstances and find the best loan program for your needs at a fair and competitive price.

To get more information, including a rate quote, that you can use and believe please contact one of our mortgage consultants.

 
Pick a payment mortgage: HOT NEW PROGRAM
30 Year Fixed Rate Loan
3/1 ARM
5/1 ARM
7 Year Balloon
Jumbo Loans
FHA Financing
Veterans Administration (VA):
Interest Only

Pick a payment mortgage: HOT NEW PROGRAM
 

Mortgage Payment Pick

Getting a mortgage loan is probably the largest financial commitment you will ever have to make. There are many industry terms used in the marketplace today and it is important that you are armed with the knowledge to get the mortgage that is right for you.

We have prepared a free special report entitled, "Mortgage Payment Picks and Adjustable Rate Mortgages", specifically designed to teach borrowers this industry-changing lending option.

The Pick-A-Payment ARM lets you choose the monthly loan payments that fit your finances — and puts you in control of your cash flow.

How does it work?

Every month,  you have four payment options;  Example $200,000 30 Year Fixed

  1. Minimum Payment (amount pre-defined by borrower).   $689
  2. Interest-Only Payment (no reduction in principal). $883       
  3. 30 year Payment (fully -indexed rate). $1,106
  4. 15 year Payment (accelerated amortization). $1,606

Current first year interest rates are less than 2%


30 Year Fixed Rate Loan
 

This loan has a fixed rate with a term of 30 years.  The payments do not change over the life of the loan. The amount of interest paid is the highest at the beginning of the loan than towards the end of the term.  Typically any amount paid over the principle and interest payment is applied directly to principle reduction. These term generally apply for 10, 15, 20 and 25 year fixed rate loans as well.


3/1 ARM

The 3/1 ARM mortgage is a 3-year level payment program that guarantees the payments for the first 3 years and then it becomes ARM for the remaining 27 years. The interest rate upon renewal is determined by an index out of the lender's control and may not be increased by more than 6% in interest. The prime advantage to the borrower is that the lender can offer a fixed rate level mortgage payment at interest rates .1% -1 .50% below 30 year fixed rate mortgages. This is because the lender is only locking in the interest rate for 3 years, rather than 30 years under the traditional 30-year fixed rate mortgage. The one disadvantage is the borrower may have to pay substantially higher interest rates and payments after the first 3 years, if interest rates go up over the first 3 years.


5/1 ARM

The 5/1 ARM mortgage is a 5-year level payment program that guarantees the payments for the first 5 years and then it becomes a 1-year ARM for the remaining 25 years. The interest rate upon renewal is determined by an index out of the lender's control and may not be increased by more than 5% in interest. The prime advantage to the borrower is that the lender can offer a fixed rate level mortgage payment at interest rates .25% - .50% below 30 year fixed rate mortgages. This is because the lender is only locking in the interest rate for 5 years, rather than 30 years under the traditional 30-year fixed rate mortgage. The one disadvantage is the borrower may have to pay substantially higher interest rates and payments after the first 5 years, if interest rates go up over the first 5 years.


7 Year Balloon

The 7/23 mortgage is a 7-year level payment ARM that guarantees the payments for the first 7 years and then it becomes a fixed rate mortgage for the remaining 23 years. The interest rate upon renewal is determined by an index out of the lender's control and may not be increased by more than 6% payment at interest rates .25% - .50% below 30-year fixed rate mortgages. This is because the lender is only locking in the interest rates for 7 years, rather than 30 years under the traditional 30-year fixed rate mortgage. The one disadvantage is the borrower may have to pay substantially higher interest rates and payments after the first 7 years, if the interest rates go up over the first 7 years.


Jumbo Loans

Loans in excess of  FNMA/FHLMC limits ($333,700) are called Jumbo loans and often carry higher interest rates and points. Larger down payments may also be required on these loans


FHA Financing

FHA loans have a lower down payment requirement than conventional loans, but higher than VA loans. FHA has a more liberal qualifying formula than on conventional loans but not as liberal as VA loans. FHA loans made before December 15, 1989 are fully assumable and can be creatively financed. Loans made after December 15, 1989 can be assumed at the same interest rate with qualification. FHA is more lenient on properties that are older or are located in undesirable neighborhoods. Disadvantages - $155,250 county loan limits may be inadequate in high cost areas. Appraisals may contain more repair requirements than conventional loans.


Veterans Administration (VA):

The VA loan program for owner-occupied housing is one of the best loan programs in the free world. It is possible for a veteran to obtain 100% loans up to $203,000 with absolutely no down payment and the seller or builder is allowed to pay all of the veteran closing costs, making the total cash required to purchase, in some instances, zero. If the veteran desires higher priced homes, he generally is required to make a down payment on the amount over $203,000. Generally, the Veterans Administration is a little more liberal than conventional lenders would be with regard to the veteran's credit standing and qualifying for the VA loan, although recent VA underwriting changes make the qualifying criteria similar to conventional mortgages.


Interest Only

Borrower pays back interest only on the loan and there is no amortization until later or until the end of the term. This may occur when a purchaser wishes to resell property after a short period or if he wishes to build up enough income from the property before amortization. 

Please feel free to reach me at any of the following sources:

Please contact Keith McDonald: Registered Mortgage Loan Originator

940-728-4000

214-663-9787 Cell

lnstarm@verizon.net

NMLS# 329871 Company NMLS# 330431

 

Hours of Operation are M-F 8 a.m. to 6 p.m.

 




Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $424,100 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 $333,700 with closing costs of $6,674. Jumbo Loans (whose maximum loan amount exceed $424,100 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.