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Contacting us to fill out our loan application is the first step. Follow the instructions to complete the paperwork in a few minutes. Then bring your application in or fax it to us
at (510) 883-7075 to get things rolling.
If you have a question or a message for your loan rep, please
email us at mary@erihomes.com.
Common Types of Loans
Fixed rate loans have a interest rate that does not change over the life of the loan, whereas adjustable rate loans are fixed for a period of time, and then adjust based on the strength of the economy. Adjustable rate loans are riskier due to the possibility of an interest rate increase. However, because you are assuming some of the risk the lender will generally reward you with a lower interest rate. Adjustable rate loans are best for borrowers who do not plan on keeping the loan past the fixed period.
What are Points?
Points are a one-time fee that a borrower pays to lower the interest rate. Points are defined as a percentage of your loan amount, with one point being equal to one percent of your loan. For example, if you borrow $200,000, one point would be equal to $2,000. Paying one point will generally reduce your interest rate by approximately .25%
Interest-Only Loan Option
Interest-Only loans may be a way of increasing your purchasing power or reducing your monthly payment. You lower your monthly costs by just paying the interest during the first ten years of your loan and you decide on a monthly basis how much or how little of the principal to repay each month. These loans should not be confused with negative amortization loans- with Interest-Only the principal balance never increases.
How Do I Know Which Type of Mortgage to Choose?
ERI believes that you should treat your mortgage as an investment. For most people their home will be their biggest investment for the future. A mortgage payment is a type of "forced saving" that many people will count on for retirement. In addition, the tax savings from writing off the interest will greatly reduce the yearly cost of your mortgage payments. We would be happy to talk in further detail regarding your mortgage choices.
The Loan Process
The loan process is slightly different for every person, and at ERI we recognize that each loan is unique. However, there is a pattern to the loan process, and you should know what to expect before you decide to apply. At ERI, your mortgage is assigned a loan consultant who will personally assist you through the entire process and help you close your loan without confusion or stress.
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