Loan Programs

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  Fixed-Rate Loans: You will pay the same interest rate and same monthly payment of principal and interest for the duration of the mortgage. The most common terms are 30, 20 & 15 years. Fixed-rate mortgages are best if you plan on being in your home for a while.
  
  • 30 Year Fixed Rate Loan: One of the most popular loans, many people like the fixed interest rate and lower payments, but since the term of the loan is longer, you will pay more interest than a 15 year loan.
  
  • 15 Year Fixed Rate Loan: You generally will pay a lower interest rate, however even though you will pay less interest your payments will be higher than a 30 year loan.
  
  • 40 Year Fixed Rate Loan: Generally, you will have lower monthly payments because the loan is repaid over a longer term, however you will build equity in your home much slower than a 15 or 10 year loan.
  
  Adjustable-Rate Loans: (ARM) The interest rate stays fixed for an initial interest rate period, which ranges from 1-7 years. Then the rate will adjust up or down each year for the life of the loan based on a specified index. An ARM is a good option if you believe interest rates will go down over the next few years or if you plan on staying in your home less than 10 years.
  
  The most popular of these are:
  
  • 3/1 ARM: If you plan to stay in your home only 1-3 years. You will have a 3 year fixed interest rate and then it will adjust every year after the first 3 years.
  
  • 5/1 ARM: If you plan to stay in your home only 3-5 years. You will have a 5 year fixed interest rate and then it will adjust every year after the first 5 years.
  
  • 7/1 ARM: If you plan to stay in your home only 5-7 years. You will have a 7 year fixed interest rate and then it will adjust every year after the first 7 years.
  
  Combination Loans: A loan where you receive a first mortgage combined at the same time with a second mortgage. This option may help you avoid the costs of mortgage insurance and/or the higher rate of a larger loan with as little as 10% down.
  
  • The most popular combinations are 80-10-10 (80% first mortgage, 10% second mortgage, 10% down)
  
  • 75-15-10 (75% first mortgage, 15% second mortgage, 10% down)
  
  Old Virginia Mortgage, Inc. provides a variety of loan programs incorporating the loan types listed above.
  
  • VHDA: (Virginia Housing Development Authority) for first time home buyers only.
  • VA: For active and retired Military Veterans
  • FHA: Most popular loan, a lower down payment required, 3.5% required.
  • Conventional: 10% down payment required
  
• REVERSE MORTGAGE: For those Age 62 or Better
  
• Extended Rate Lock Program
  • FREE Float Down
  • Available on Conforming Fixed Rate & Arms
  • Available on Conventional & Government Loans (FHA & VA)