PHH Mortgage

PHH Mortgage's Success

One of the reasons for PHH Mortgage's success is the service they offer customers. Their mission statement says "We promise to treat our customers like family." Here are a few highlights that make this company stand above the rest:

• Guaranteed closing date – If they don't close on time they will reduce the interest rate by 1/8 of one percent for the life of the mortgage loan.
• Free pre-approval to qualifying buyers
• A full range of programs at competitive rates

Mortgage Tools Available

PHH Mortgage offers online tools to the public including:

• Rent vs. Buy Calculator
• Affordability Calculator
• Monthly Payments Calculator
• Amortization Calculator
• Refinance Calculator

Mortgage Programs from PHH

Fixed Rate Mortgage

Fixed rate mortgages offer stable payments that don't change because interest rates and the principal payment stays the same over the life of the loan. This eliminates worry over fluctuations in the mortgage market and makes a good choice for buyers who plan to live in their new home for at least seven years or longer. Interest for a fixed rate mortgage is usually priced higher than an adjustable rate mortgage. PHH offers a number of fixed-rate options:

• 40 Year Fixed Rate
• 30 Year Fixed Rate
• 20 Year Fixed Rate
• 15 Year Fixed Rate

Interest Only

With an interest only mortgage, borrowers are required to make payments that consist of interest only. The interest rate is fixed, and the option to pay interest only lasts for a pre-determined amount of time. PHH Mortgage offers periods of three, five, seven or ten years. During the Interest Only time period, loans are re-amortized based on the principal balance at the end of each month. Borrowers can pay more than interest if they choose to pay toward the principal. It's important to note that making interest only payments leaves the loan balanced unchanged.

Once the Interest Only period has ended, loan payments become fully amortized. This means payments of interest and principal which are sufficient to pay off the mortgage loan over its term. Once the loan payments become fully amortized, the interest rate adjusts every year. Interest rates are based on the one-year LIBOR index plus a margin.

Adjustable Rate Mortgages

Adjustable-rate mortgages offer interest rates that change over the life of the loan and are a good choice for homeowners planning to relocate after three to five years. Benefits include:

• Initial interest rates that are usually lower than that of a fixed rate mortgage.
• Monthly payments are usually lower
• Rate caps protect borrowers with limits on the amount by which interest rates can be increased each year over the life of the loan
• Interest rates may be adjusted up or down
• Adjustable rate mortgages are amortized over 30 years

Seven Year Balloon

With a Seven Year Balloon mortgage borrowers get a lower price on the loan, which increases their buying power. Payments are calculated as if the term is 30 years and borrowers usually have the right to refinance after 7 years. Regular set payments are made, but after a specific period of time (7 years) a large lump-sum payment is due to pay the balance.

Loan Approval

PHH Mortgage provides leading-edge underwriting technology combined with decades of experience to make the loan approval process fast, easy, and available online. As potential borrowers complete loan applications online, PHH Mortgage reviews the applicant's credit history electronically in real time. This enables them to give an online decision in a matter of minutes.