Many of the Freedom Equity Group agents become employees of a Mortgage Banker that will provide the proper licensing and compliance for them to work with their clients. Additionally these bankers have established relationships with a wide variety of lenders and banks so that they can truly find competitive products to meet their clients needs. While interest only loans and pay option arm's are most often used, there are times when that mortgage is not the right choice or when a client simply doesn't qualify. Often, the Originator can still offer a mortgage solution that improves the client's situation and provides a plan to build wealth.

It is important to note that Freedom Equity Group is not a mortgage lender but a training, marketing, and employment company. All mortgages are processed and originated through the mortgage banker relationship you have established through us.

The information about mortgages available on this website is for educational purposes only and is not intended to solicit for mortgage business. Please consult with your financial adviser before making any decision.

Residential lending options available include:

Pay Option ARM's -- A True Wealth Building Opportunity

The Pay Option ARM is a unique adjustable rate mortgage that allows you to make monthly payments that are lower than the full amount of interest due during the first five or ten years of the mortgage's term

Why Choose this Mortgage over Other Mortgage Types?

This mortgage is the Cadillac of home mortgages. With the four payment options, it's really like having four mortgages in one. No other mortgage gives you so much control over how you manage your money.

Someone who wants a low interest rate on a jumbo-sized mortgage may choose a Pay Option ARM.    Maximum mortgage amounts are higher for the Pay Option ARM than with some traditional mortgage    options, without carrying a higher interest rate simply for mortgage size.
This mortgage is great for those needing extra money to plan for their future.
The Pay Option ARM can give you the money to get out of debt.
This mortgage is ideal for people whose income is irregular, such as commission or bonus income.
This mortgage is perfect for someone who will invest the savings and expect a higher return than the    interest rate of the mortgage.

Generally speaking, you will need to show a fair to good credit history to qualify for a Pay Option ARM; so not everyone will qualify.

Who Should Not Choose a Pay Option ARM?

The maximum combined loan to value is 95%.
Due to the minimum feature, a Pay Option ARM might not be ideal in a declining housing market.
Those who must have high loan-to-value (LTV) ratios may not be good candidates for this mortgage.
Anyone who plans to use the savings to acquire more debt, such as a new car, should not get a Pay    Option ARM.

The Interest Only Mortgage

What Is It?

With an interest only mortgage, you only pay the interest on the mortgage in the monthly payments for a fixed term. Terms are usually three, five, seven, or ten years. The lower the term, the lower the interest rate. At the end of the term you can either refinance, pay the balance in a lump sum, or start paying off the principal. Payment amounts will greatly increase if you choose to pay the principal. Because there is no principal balance reduction, payments offer good savings over traditional mortgage types.

Why Choose this Mortgage over a Wealth Builder Mortgage?

100% financing is available with an interest only mortgage and not available with a Pay Option ARM.
If values in your area are increasing rapidly, you can get 100% financing with an interest only    mortgage and refinance into a Pay Option ARM at 80% or less before the interest only term is up.
If your credit or your home does not qualify for a Pay Option ARM, an interest only mortgage may    offer savings.

Who Should Not Choose an Interest Only Mortgage?

Someone on a fixed income.
Someone whose spending habits are out of control.
Someone who may not qualify for the needed mortgage amount when it's time to refinance at the end    of the term.
Someone who never wants to refinance or move again.

The Adjustable Rate Mortgage

What Is It?

There are many types of adjustable rate mortgages. The most popular are the hybrid Adjustable Rate Mortgages (ARMs), often referred to as 3/1, 5/1, 7/1, or 10/1 ARMs. These mortgages have fixed rates for the first three, five, seven, or ten years of the term. After that the interest rate adjusts annually. The most common indexes used to calculate the rate are the 11th District Cost of Funds Index (COFI), the one-year Treasury Bill, and the London Interbank Offer Rate (LIBOR).

Why Choose this Mortgage over a Pay Option ARM?

These mortgages are available from both conforming and subprime lenders, so even those with bad    credit may be able to qualify for a mortgage.
Someone who has a low tolerance for payment change or rate risk may choose a hybrid mortgage for    the savings, and refinance before it begins to adjust

Who Should Not Choose an Adjustable Rate Mortgage?

Anyone who does not understand that the payment amount will change, or how and when it will    change, should not get an adjustable rate mortgage.
Those who may be unable to qualify for a mortgage if they choose to refinance later should not get an    adjustable rate mortgage.

The Traditional Fixed Mortgage

What Is It?

Fixed rate mortgages are the most common, readily available, and easy-to-understand mortgages on the market. The rate and payment are fixed for the entire term of the mortgage. The most popular term length is 30 years. The longer the term, the higher the rate will be. You pay a premium to the bank for guaranteeing the interest rate for so long into the future. Fixed rates are among the highest lending rates.

Why Choose this Mortgage over a Wealth Pay Option ARM?

Someone who has no tolerance for payment change or rate risk should choose a fixed rate mortgage. Someone who is absolutely positive that they will never move or refinance again is a good candidate for a fixed rate mortgage.

Who Should Not Choose a Fixed Rate Mortgage?

Anyone who ever plans to move or refinance is paying more than necessary by choosing a fixed rate mortgage.

The Subprime Mortgage

Subprime mortgages are simply mortgages that are made at a higher risk to the lender than other mortgages. This risk comes in the form of less-than-perfect credit or no credit, high mortgage-to-value ratio, unusual properties, or unusual lending conditions. Increased risk to the lender equates to increased interest rates and fees to the consumer. Subprime mortgages can be nearly any type of fixed or adjustable rate mortgage. The Pay Option ARM is not available in the subprime market.

Why Choose this Mortgage over a Pay Option ARM?

Typically these mortgages are recommended when our clients do not qualify for any of the options    above.

Who Should Not Choose a Subprime Mortgage?

Someone whose credit and property qualify for lower rate mortgages and who does not need a high mortgage-to-value usually has no need to get a subprime mortgage.

The Reverse Mortgage

A reverse mortgage is just that; instead of a borrower making payments to the lender, the lender pays the borrower based on the equity in the home. Reverse mortgages are only available for homeowners who are age 62 and older.

The home does not need to be fully paid off. A reverse mortgage can pay off an existing mortgage. There are no income or medical requirements to qualify. As with any other mortgage, the borrower continues to own the home and hold title to it.

The money received from a reverse mortgage can be used for anything. If the appraisal determines the home is in need of repairs in order to qualify, a portion of the proceeds will be set aside for this purpose. The size of the reverse mortgage depends not on income, but on the homeowner's age at the time of application, the type of reverse mortgage chosen, the value of the home, current interest rates, and sometimes, where the homeowner lives. In general, the older the applicant, the more valuable the home, and the less owed on it, the larger the reverse mortgage can be.

The money provided from a reverse mortgage is tax-free. Borrowers can receive their money in any combination of three ways:

Lump sum payment
Fixed monthly payments for up to life
A line of credit

The mortgage becomes due and payable when the borrower no longer occupies the property as a principal residence. The home does not have to be sold to pay off the mortgage, but the mortgage is not assumable and must be paid off. Reverse mortgages are non-recourse loans. This means that neither the home owners nor their heirs will be responsible should the loan balance exceed the value of the home at the time of sale. The borrower's estate receives any remaining equity in the home at the time of repayment.