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Paul Fausone
Home Loan Advisor
NMLS# 830953

8945 Cal Center Drive
Sacramento, CA 95826

(559) 907-5446 or
(559) 212-8787
(916) 732-2870 Fax
pfausone@golden1.com

 

Getting to know me

I have 20 years of experience providing loans to individuals and families in the Central Valley serving members in Fresno, Madera, Kings and Kern Counties. I don’t just work for our members; I work with them to ensure they get the best rate possible. Read More>

Types of Loans

Fixed Rate Mortgage
A fixed-rate mortgage has an interest rate and monthly payments that never change. This may be a good choice if you prefer the stability of a consistent payment amount or if you plan to stay in your home for a long period of time. Fixed rate mortgages have historically been the most popular type of financing and the most common term is 30 years. Golden 1 offers terms from 10 to 30 years. When you choose a shorter term your monthly payments will be higher but you will be able to pay off the loan in a shorter amount of time, and consequently pay less interest. As a rule of thumb, it may be harder to qualify for a fixed-rate loan than for an adjustable-rate loan. When interest rates are low, and likely to rise over the long term, a fixed-rate loan may be a good choice because you can lock in the rate for the life of your loan.

Adjustable-Rate Mortgage (ARM)
The interest rate on an ARM changes and, therefore, so will your payment. Typically ARMs have a period of time where the interest rate is fixed, which can range from one month to one year in length. This means your rate and payment could adjust as frequently as every month or just once a year. When it comes to ARMs, the basic rule to remember is that the longer you ask the lender to charge you a specific rate, or the longer the rate is fixed, the more expensive the loan. ARM rates tend to be lower initially than fixed-rate mortgages, and are a good choice if you are looking for a low initial payment. During times of declining interest rates, ARM payments have actually decreased when they adjusted, but it is more typical for ARM payments to rise when they adjust.

Golden 1 ARMs include a 3/1, 5/1, 7/1 and 10/1 which are also referred to as Hybrid ARMs. These offer both a low initial rate and fixed payments for a longer period of time (3, 5, 7, or 10 years). For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, and will adjust to the then-current rate annually, for the remaining 25 years. Hybrid ARMs have different benefits for different people depending on the type of property, goals and overall financial picture. To fully understand all the pros and cons, please talk to one of our experienced Home Loan Advisors.

2/1 Buy Down Mortgage
The 2/1 Buy Down Mortgage allows the borrower to qualify at below market rates in order to borrow a higher loan amount. The initial interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term.

Jumbo Loan
Each year Fannie Mae, Freddie Mac, and their regulator, the Federal Housing Finance Agency (FHFA), set a maximum amount for loans that they will buy from lenders. Currently conventional loans, which are the most common kinds of loans, have a limit of $417,000, although some limits are higher in high-cost areas. Since these limits may not be high enough for some buyers, they need to get a jumbo loan to purchase a home. A jumbo loan is simply a loan amount that is larger than the current loan limit for a specific area. The cost of obtaining a jumbo mortgage is generally higher than the cost of obtaining other loans.

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