Hemet Mortgage. Professional mortgage services in Riverside and San Bernardino Counties of Southern California. Conventional and Govt. mortgage, reverse mortgages and other products to meet every need
Get to know Larry Iest
I would love to have you as my clients and help you with all of your mortgage needs. I know that understanding and fulfilling your needs is what makes the mortgage process successful.
During your personal loan consultation I will present you loan options and help guide you through the many aspect of each loan program. This will give you the knowledge and understanding to make a real good informed decision.
With outstanding customer service and extensive knowledge of the mortgage industry, I will ensure that you will have a successful and pleasant mortgage experience.
Our business ties us strongly to my valued clients and our goal is to continue to extend you a level of service and attention that is not dependant on whether you are prepared to do a transaction. We appreciate the opportunity to serve you and have designed our site to provide you, as a homeowner, valuable resources that can assist you in your goals, hobbies, and living.
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Thank you for vieing our ActiveRain.com profile. Feel free to contact me any time. I would be happy to discuss your situation and provide the information you need to make the right decision.
Larry Iest's Blog Posts
I specialize in all aspects of residential mortgage lending. From First time buyers to the high end move up buyer, I have loan programs for you. I also have many programs to help clients that have credit challenges, Conventional and Govt. Mortgage products and reverse mortgages.
Adjustable Rate Mortgages: How Do They Really Work?
An adjustable rate mortgage (ARM) is one that provides for the interest rate to change (adjust) at fixed intervals throughout the term of the loan. How often the interest rate can change is determined in advance, and is spelled out in the loan agreement (note). The three most typical ARM loans adjust monthly, every six months, or annually.The Basic Features of an ARM LoanIndex: The index is the cost of the money to the lender and is what the interest rate of an ARM is based upon. There are several indices in use today: the 1-Year Treasury Bond index (which is the one most commonly used), the Six-Month Treasury Bill index, the 11th District Cost of Funds index, and the LIBOR index, among a few others. The value of the index changes at regular intervals.Margin: This is the spread between the value of the index and the interest rate actually charged to the borrower. Essentially, it is the lender's profit margin. The margin is set at the beginning of the loan and does not change for the life of the loan.Initial interest rate: This is the interest rate that you pay until the first adjustment. Often the initial interest rate is lower than the sum of the current index value and the margin. When this happens, it is called a "teaser rate." If the ARM loan has a teaser rate, the interest rate will almost certainly increase at the first adjustment or two.Adjusted rate: This is the new interest rate that the borrower pays for the next adjustment period. It is calculated according to a formula that involves the index value, the margin and the adjustment cap, the terms of which are set forth at the beginning of the loan in the mortgage note. (see How the Interest Rate is Calculated at Each Adjustment Period)Adjustment cap: The adjustment cap limits the amount the interest rate can change from one adjustment period to the next. It is set at the beginning of the loan and does not change for the life of the loan.Adjustment period: This is the fixed interval period at which the interest rate will adjust. The payment will then change based, in part, upon the new interest rate.Life cap: The life cap of the loan is the maximum interest rate that can ever be charged on the loan, regardless of how high the value of the index rises. The life cap is typically quoted as an interest rate; i.e. a "five percent life cap" which means the life cap is five percent over the initial interest rate.