Performance Loan

• Do you want the smallest mortgage payment possible?
• Could you use the monthly savings you realize in another way? Such as:
• Children's college funding?
• Retirement Planning?
• Paying off other debts, such as credit cards?
• Would you like your loan paid off several years early?

Did you know that Neighborhood Mortgage, Inc. is one of the very few places that you can get a true BI-Weekly mortgage? We have taken the best of mortgage financing design features from the United States and Canada to offer you one of the most innovative mortgages available in Massachusetts. If this sounds interesting to you then read on.

The Performance Loan Highlights:

• A Very Low Starting Payment, allows for low payments.
• A very rare but true BI-Weekly loan. Only a true BI-Weekly loan can insure that your mortgage is paid off years earlier. Instead of paying your loan by check monthly, your payment are divided in half and conveniently debited from your present bank account (checking or statement savings) once every other Monday. Unlike many other "BI-Weekly payment plans", we give you the full credit you deserve: our Performance Loan actually applies the money from your bank account to your mortgage the very same day.
• No Income/No Asset Verification options with no change in financing terms! This is a great streamlining feature for us to easily approve commissioned or self-employed buyers!
• NO escrows required for real estate taxes or home insurance so less money needed at closing.
• No reserves required of several month's of mortgage payments, again requiring less money needed at closing.
• Purchase a home with as little as 5% down with no requirement for expensive PMI (Private Mortgage Insurance).
• No Automated Underwriting (Up to 80% financing)-Our true common sense approach allows us to approve loans that others can not!
• No Credit Scoring used as an absolute factor in approving a loan-Scores are great for sports, but not for evaluating borrowers. We actually read a borrower's credit history to give them the credit they deserve.
• Monthly detailed statements are mailed to you so you always know exactly how your loan is working for you.
• Available for loan amounts up to $1,500,000. (Please contact our Executive Client Services Team for other options up to $7,000,000.)

The Performance Loan is a one year adjustable mortgage, but it is unlike any of the typical adjustable mortgages that are so commonplace at banks and other mortgage companies. To illustrate how superior our Performance Loan is, let's compare it with a typical adjustable mortgage in the below examples:

First lets look at our Performance Loan:

• 1.00% Starting Payment Rate (7.26% APR) is one of the lowest available in Massachusetts.
• An innovative cap on the payment instead of the interest rate keeps your payments in control.

Just look how small your payments would be with our Performance Loan for a loan of $500,000:

As you can see, our emphasis is on keeping your payments reasonable from year to year.

• We use an index based on deposit money people like you keep in the bank. Deposit money interest rates move very slowly, in fact this is the most conservative index we could use for a loan.
• No credit scoring or automated decision systems mean we can take a more personalized approach to underwriting loans for approval. (Up to 80% financing)
• True BI-Weekly loan structure pays off your loan several years faster.
• Optional Conversion Feature allows you to change this to a fixed rate mortgage with just a simple telephone call and paying a $200 fee. No refinancing paperwork or costs, no requalifying, no reappraisal of your home.
  

Now let's compare to a "Typical One Year Adjustable":

• A starting interest rate that is significantly higher than our Performance Loan (the 4% to 5% range is common)
• Interest rate cap of 2%, which although it does not sound like much, that little 2% rate increase will make your mortgage payment go up more than you might think, just look at this illustration:

Payments on a $500,000 loan would look like this:

(Above numbers based on a starting interest rate of 5.25%, this is for illustration of cash flow/payments only) You can see why most "typical" adjustable mortgages are not attractive, because most people do not have incomes that go up enough in two years to keep up with these increases.

• Index (control) of the interest rate is based on a treasury security index, a very volatile index that most home borrowers cannot relate to.
• Credit scoring and automated underwriting are utilized to determine if you are approved for this type of loan.
• To get out of this loan you would have to refinance, with all the same costs you paid when you started with it.
  

What about comparing the Performance Loan to a fixed rate loan?
This is one of the most common questions we are asked. Obviously a fixed rate loan would have stable payments that do not move. However, they would be stable at a much higher level than where our Performance Loan would be for many years.

Payments on a $500.000 loan would look like this:

(above fixed rate payments based on an interest rate of 6.75%, this is for illustration of cash flow/payments only)

Additionally:

• Automated underwriting and credit scoring are utilized with fixed rate loans to determine if you can be approved.

Is the Performance Loan right for you? Only if you are interested in:

• Having the smallest mortgage payment possible.
• Improved cash flow to your monthly household budget. 
• Paying off your loan several years sooner.
• The option of converting to a fixed rate later, without the cost or inconvenience of refinancing.
• A more personalized approach to being approved for a loan.
  If so, then the Performance Loan could be the perfect for you! Contact us now and let's discuss just how much we can save you each month!

Please Call Us if you have questions about any of our Loans!