Products

At Hestia Mortgage, we offer a variety of loan programs designed to meet your needs. By working with leading lender partners, we ensure we are able meet as many of our borrowers needs as possible.

The two most commonly used types of mortgages we offer, Fixed-Rate and Adjustable Rate Mortgages, are described below.

With a Fixed-Rate Mortgage, your monthly payment of principal and interest never change for the life of your loan. Generally with a fixed-rate loan your payment will be very stable. Changes that do occur are usually because your property taxes go up or down as might your homeowner's insurance premium. Both of these are often included in your monthly payment.

Fixed-rate loans are available in various lengths of time or what the industry calls “terms” including: 30-year, 20-year, 15-year, even 10-year. Some fixed-rate mortgages are called "biweekly" mortgages and shorten the life of your loan. You pay every two weeks, a total of 26 payments a year which adds up to one "extra" monthly payment every year.

During the early amortization period of a fixed-rate loan, a large percentage of your monthly payment goes toward interest, and a much smaller part toward principal. That trend slowly reverses itself as the loan ages.

You might choose a fixed-rate loan if you want to lock in a low rate. If you have an Adjustable Rate Mortgage (ARM) now, refinancing with a fixed-rate loan can give you more monthly payment stability.

Adjustable Rate Mortgages, or ARMs , as they are commonly called come in many varieties. Generally, ARMs determine what you must pay based on an outside index such as, the one-year Treasury Security rate (T-BILL), the 6-month Certificate of Deposit (CD) rate, the Federal Home Loan Bank's 11th District Cost of Funds Index (COFI), or others. ARMs adjust at various increments such as every six months or once a year.

Most ARMs have a "cap" that protects you from your interest rate and monthly payment going up too much at once. There may be a cap on how much your interest rate can go up in one period or per adjustment even if the underlying index goes up by more than the cap-this is how the cap protects you. In addition, almost all ARM programs have a "lifetime cap" where your interest rate can never exceed that cap amount, no matter what.

ARMs often have their lowest, most attractive rates at the beginning of the loan, and can guarantee that rate for anywhere from a month to ten years. You may hear people talking about or read about what are called "3/1 ARMs" or "5/1 ARMs" or the like. That means that the introductory rate is set for three or five years, respectivley, and then adjusts according to an index every year thereafter for the life of the loan. Loans like this are often best for people who anticipate moving and therefore selling the house to be mortgaged within three or five years, depending on how long the lower rate will be in effect.

You also might choose an ARM to take advantage of a lower introductory rate and count on either moving, refinancing again or simply absorbing the higher rate after the introductory rate goes up. With ARMs, you do risk your rate going up, but you also take advantage when rates go down by pocketing more money each month that would otherwise have gone toward your mortgage payment.

Our product offering includes:

Fixed Rate Mortgages:

Terms for 10-40 years
Interest Only (10 year interest only)

Adjustable Rate Mortgages:

T-Bill, LIBOR, MTA indexes
6-month, 1, 3, 5, 7, 10 year initial fixed rate period
40-Year term
Interest Only