Loan Products
- Adjustable Rate Mortgage (ARM)
- Home Equity Line Of Credit (HELOC)
- Construction Loans
- Land Financing
Adjustable Rate Mortgage (ARM)
Compared to fixed rate mortgages, Adjustable Rate Mortgages (ARMs) offer a lower interest rate to start, so your monthly payments are generally lower. But, the interest rate moves up and down with the market based on an "index". Some of the more common indices include U. S. Treasury Bills, Cost of Funds Index (COFI) and the London Interbank Offered Rate (LIBOR). Most ARMs have an initial fixed rate period where the interest rate doesn’t change followed by the rest of the loan’s lifetime period where the rate is adjusted at predetermined intervals. Many ARMs have caps that limit how much your interest rate can change per period as well as for the life of the loan.
Also be aware that there are some very low rates ARMs that start out with "discounted" rates. These discounted rates are below the market rate and will definitely go up at the first adjustment period.
Adjustable rate mortgages might be right for you if:
- You want more property than you can qualify for now with a fixed rate.
- You are confident your income will increase or rates will not go up much.
- You plan on selling or refinancing within seven years of buying your home.
Home Equity Line Of Credit (HELOC)
This is perfect for tapping into your home equity with flexible options. This line of credit will let you write checks when you need to, with a preset limit. This helps you finance your projects on your schedule. Only Panamanian residents qualify for home equity loans at this time.
Construction
Construction loans are used to finance the building of a new home rather than purchase an existing home. They are usually variable-rate loans that have interest only payments during the construction phase. Draws are scheduled based on the stages of construction to pay the builders. Many construction loans are construction-to-permanent which means that when construction is complete, the loan is converted to a normal mortgage. This has the advantage of a single loan with one closing.
Land Financing
Financing for undeveloped land is available for up to 50% of the current lands value. An appraisal is required to obtain the lands estimated value.
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