Publications

Purchase Loan: This is a regular loan for the property purchase in the US. The loan will be disbursed simultaneously with the property transfer, the closing. [Read More]

Adjustable Rate Mortgage (ARM) – Variable Rate Mortgage
The selection is huge: One can differentiate between 1 yr ARMs, 3 yr ARMs, 5 yr ARMs, 7 yr ARMs, 10 yr ARMs. They all have one thing in common: The interest rate is set for a specific time period at the beginning of the term. The fixed interest rates, analogous to the above mentioned models, are 1, 3, 5, 7, or 10 years. Thereafter, the interest rate can change, depending on market trends – according to the respective index of the underlying model (for example 1 yr LIBOR/ 1 yr T-Bill). The index is publicly listed; the margin fixed by contract i.e. a potential interest adjustment after the first commitment period is not subject to the whim of the American bank, but instead is closely tied to the market. [Read More]

A few years ago the U.S. banks still offered a number of different loan programs. They differed in fixed interest rates, proof of liability, repayment arrangements, maturities and other features. Nowadays there are still a number of different financing options, but the financing banks now limit themselves to only the basic models, the “ARMs“. “ARM“ stands for Adjustable Rate Mortgage, i.e. a variable-rate mortgage loan. Since these loans possibly function very differently than the variable programs you may know from your home country, here is an explanation: [Read More]

Due to the U.S. economy and the existing home inventory in the banks’ portfolios over the last few years, U.S. banks were only offering purchase mortgages. Since the spring of 2011 this is starting to slowly change again. Cautiously, banks are beginning to offer occasional programs which will finally offer Foreign Nationals the possibility of building their own individual dream house on their own property.

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