Learn about our fixed rate mortgages, adjustable rate mortgages and other mortgage programs.

Pan American Mortgage offers a variety of loan products to suit every income, every down payment size, and a wide range of credit scores. Learn more by checking out one of these mortgage loan products and programs:

• Fixed Rate Mortgages
• Adjustable Rate Mortgages
• Balloon Mortgages
• Jumbo Mortgages
• Interest Only Loans
• Low and No Down Payment Programs
• No PMI
• Cash-out Refinances
• Relocation Mortgages
• Vacation Home Financing
• Investment Property Financing
• Home Construction Loans

Fixed Rate Mortgages

Our fixed rate mortgage loan options offer a stable interest rate and a principal and interest payment that won't change over the life of the loan. We offer 10, 15, 20, 25, 30 and 40-year fixed rate loan options.

Consider a fixed rate mortgage loan if:

• You plan to stay in the house for many years
• You want the security of knowing your interest rate will not change

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Adjustable Rate Mortgages

We offer a variety of Adjustable Rate Mortgages (ARMs), including 3/1, 5/1, 7/1 and10/1 ARMs. Typically adjustable rate mortgages begin at a lower interest rate, which can help you qualify for a larger mortgage loan. The 'low' introductory rate is used to calculate the mortgage payment for a specified period of time (3, 5, 7 or 10 years, depending on which adjustable rate mortgage you choose). Once this introductory period is over, the interest rate adjusts periodically and the payments may move up or down.

Consider an adjustable rate mortgage if:

• You expect to live in a home for a short time period, respective to the term of your adjustable rate mortgage
• You’re prepared to handle an increase in payments once the introductory period ends
• You’re trying to qualify for a larger mortgage loan amount

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Balloon Mortgages

A balloon mortgage is a short-term, fixed-rate mortgage that offers a lower interest rate throughout repayment, but requires a lump sum payment due at the end of a specified term. Balloon mortgages have five and seven-year terms, which means the lump sum payment is due at the end of five or seven years, depending on what term you choose.

Consider a balloon mortgage if:

• You plan to sell your home in five to seven years
• You plan to refinance within five to seven years
• You’re prepared to pay off your mortgage loan at the end of the specified term

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Jumbo Mortgages

Jumbo mortgage loans are loans above the maximum loan amount established by government-chartered corporations Fannie Mae and Freddie Mac. Since these loans don't conform to Fannie Mae and Freddie Mac underwriting guidelines they do not have government guarantees. Jumbo mortgages are generally priced slightly higher than conforming loans, range from $417,001 to $1 million or more.

Pan American Mortgage offers jumbo mortgage loans in a variety of terms for primary residences, vacation homes and investment properties. All jumbo mortgage loans are subject to program underwriting approval.

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Interest Only Loans

With these loans you only make interest payments during an initial period of the loan term (usually five to 10 years). During the initial “interest only” period, your payment will not include any repayment of principal. So, the loan balance remains unchanged. Once the initial term expires, the interest only loan will become a fully amortizing loan based on the remaining term, and you’re payments will include interest and repayment of principal.

While you're only required to make only interest payments during the initial “interest only” loan period, you can choose to pay more than the interest to help lower your principal.

We offer an interest only loan option on our 30-year fixed mortgage and our 3/1, 5/1, 7/1 and 10/1 adjustable rate mortgages. Keep in mind that interest only adjustable rate mortgage loans are subject to periodical rate adjustments, once the introductory period ends.

Consider an interest only loan if:

• Your main income is from infrequent bonuses and/or commissions
• You’re prepared to handle an increase in payments once the introductory period ends
• You plan to invest the savings you receive on the difference between the interest only loan term and the remaining term of your loan, and you’re confident that the investment will make money

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Low and No Down Payment Programs

No Down Payment Program

• Borrower must contribute $500 to the transaction
• Available on fixed rate mortgage loans; 5/1, 7/1 and 10/1 adjustable rate mortgage; and, 7-year balloon mortgages
• 3% seller contribution allowed
• Limited asset and income documentation are required

Down Payment Assistance Program

• Requires a 3 percent down payment, which may come from borrower’s funds and/or a gift from a relative
• Must be a first time homebuyer
• Income must be within program guidelines
• Limited Asset and Income documentation are required

5 Percent or More Down Payment

• Down payment may come from borrower’s funds and/or a gift from a relative
• No PMI is required on conventional mortgage loans having less than a 20% down payment

Federal Housing Administration (FHA) Loan

• Requires a 3% down payment, which may come from borrower’s funds and/or a gift from a relative
• Income must be within program guidelines
• Must have average-to-good credit
• Insured by the Federal Housing Administrations, which allows lenders to provide a better deal
• We offer FHA loans in 19 states. Please contact a mortgage agent for more information at 877-727-4320

Veteran’s Affair (VA) Loan

• Use your veteran eligibility to purchase the home of your dreams
• Allows qualified veterans to buy a house costing up to $240,000 with no down payment
• Qualification guidelines for VA loans are more flexible than those for either the conventional or FHA loans

To learn more about our Low and No Down Payment programs, please contact a mortgage consultant at 1-877-727-4320.

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No PMI

If your down payment is less than 20%, most lenders require you to have Private Mortgage Insurance (PMI). Pan American Mortgage does NOT on its conventional loans!

With Pan American Mortgage conventional loans, if your down payment is less than 20%, you’ll simply receive a rate adjustment (also known as a Loan Down-Payment Rate Adjustment). Many times, a rate adjustment can be easier on the pocketbook than PMI. Rate adjustments of 0.75% of the loan amount for customers with good credit history are more beneficial when compared to PMI. Just like PMI, a rate adjustment may be removed from the loan once a satisfactory level of equity has been accrued. There may also be additional tax savings benefits with rate adjustments. Consult your tax advisor for more information. To learn more about our Loan Down-Payment Rate Adjustments, please contact a mortgage consultant at 1-877-727-4320.

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Cash-out Refinances

With a cash-out refinance, you can access the equity you’ve built in your home. You can use this cash for things like home improvements, college expenses or a new car. Many of our customers also choose to use the cash-out refinance to consolidate credit card debt.

Pan American Mortgage allows up to 90% Loan-to-Value on cash-out refinances for primary and second homes.

Here’s how a cash-out refinance works

Say your existing house is worth $225,000, and you currently owe $150,000. You need $25,000 to pay off your credit card debt. You refinance your home loan with a mortgage of $180,000. Through the cash out refinance, you pay off your current loan of $150,000. You’re left with $25,000 to pay off your credit card debt and $5,000 to use towards closing costs and other small purchases.

By refinancing and paying off your credit cards, you now pay $1108 each month instead of $1,730. That’s $622 cash savings each month.*

* The above example assumes an original 30-year fixed rate mortgage of $155,000 with an interest rate of 7.75% and a monthly payment of $1110. As a result of regular monthly payments, the unpaid balance of the loan has been reduced to $150,000. The loan is refinanced with a Pan American Mortgage 30-year fixed rate mortgage of $180,000 with a monthly payment of $1108 and a Loan-to-Value ratio of 80%. The interest rate on the Pan American Mortgage loan is 6.25%. The annual percentage rate for the new loan is 6.322%. The example assumes that the credit card debt has an Annual Percentage Rate of 18% and requires a monthly payment of 2.5% of the unpaid balance.

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Relocation Mortgages

If you and your spouse are relocating to a different city, we will consider your base salary (including commission and bonus if applicable) AND 100% of your spouse’s salary (and commission if applicable) when approving you for a loan.

Relocation loans from Pan American Mortgage are unique compared to other lenders who may only consider a percentage of your spouse’s income.

Consider a relocation loan if:

• Your employer is assisting you in relocating to another city
• You plan to relocate and start new employment in a new city
• You have a spouse who is relocating with you and planning to find another job

To learn more about our Relocation program, please contact a mortgage consultant at 1-877-727-4320.

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Vacation Home Financing

Our second home financing options are second to none! If you’re looking to buy a second home, you can enjoy low down payment options on any of our fixed, ARM or balloon products.

Through Pan American Mortgage, you’ll enjoy:

• As little as 5% down for purchase and rate/term refinance options
• Cash-out refinance options with Loan-to-Value as high as 90%

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Investment Property Financing

We offer competitive features and expanded options for investment properties with up to four units.

For investment properties that don't require rental income to qualify, we offer down payments as low as 5% for fixed rate, adjustable rate and balloon products (for purchase loans and refinancing) and Loan-to-Values as high as 90% for cash-out refinance loans (Use the cash to renovate your property, invest in other property or payoff debt. It’s your equity; you decide how to use it.).

For investment properties that require rental income to qualify, we offer Loan-to-Values as high as 90% for purchase and refinance loans, and as high as 85% for cash-out refinance loans.

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Home Construction Loans

Our home construction loan program offers a streamlined, easy process for those who are building a new home or adding an addition to their current home:

• One-time close allows you to avoid extra costs and a second closing once your loan converts from the construction phase to the permanent phase
• You can choose a construction period for up to 12-months
• You own the property during the construction phase and can receive a tax deduction before your home is built*
• You can make interest-only payments from the loan proceeds during the construction phase
• You can float or lock in your permanent rate during the construction phase
• If you lock in your rate during construction, you can float down your rate to our current 60-day base rate (plus .125%) within 30 days before the end of the construction phase.
• You can use your home’s appraised value for financing instead of the cost to build your home, which may provide built-in equity in your home.

* Consult a tax advisor regarding the deductibility of interest.