Traditional Mortgages

Products and Programs

At Merrimack Mortgage, our goal is to provide timely, accurate information to help you find the right mortgage for you and your family. Our team is here to listen to your questions and craft solutions that meet your short and long term financial goals.

Fixed Rate Mortgages

From a historic perspective, the majority of all mortgages are of the fixed variety. As the name suggests, the interest rate on the mortgage is fixed for the life of the loan. The most prevalent terms for fixed rate mortgages are the 30 and 15 year programs. Merrimack offers other options such as a 10, 20 and 25 year term. Generally speaking, a shorter term will result in a lower interest rate. For example, a 15 year mortgage will generally be .5% lower in rate than a 30 year mortgage.

Pros:

  • Rate is guaranteed. You are protected in a rising rate environment.
  • No increases in P&I payment over the life of the loan. Get comfortable with your payment over time.

Cons:

  • Other products offer lower rates in the short term such as a 5/1 ARM. If you intend to sell the home in less than 7 years, you could save money with an ARM.
  • If rates drop, you can only take advantage of lower rates through refinancing.

Rate Mortgages (ARM’s)

ARM’s have played a significant roll in the expansion of homeownership across America. By offering lower initial payments, buyers find they can afford more home with an ARM. While the short term advantages are evident, the borrower should do their homework to be aware of the adjustable features of the loan such as rate caps, index, and margin.

Pros:

  • Lower rates than fixed rate products. This equates to lower payments in the early years of the mortgage.
  • You may qualify for a larger loan amount which expands the inventory of affordable homes.
  • If rates drop, your ARM could adjust downward which results in lower payments.

Cons:

  • Potential rate increases in the future. ARM rates can adjust at predetermined intervals. Failure to plan for this can lead to payment shock.
  • Lifetime caps are typically as high as 5% or 6% over the initial interest rate. Analyze your situation and how that could impact your finances.

Jumbo Mortgages

Jumbo mortgages are loans that exceed the allowable loan limits set by mortgage giants Fannie Mae and Freddie Mac. Currently, the maximum “conforming” loan amount is $417,000 in most areas. Certain markets in New England qualify for a temporary increase in the conforming loan limit a/k/a conforming jumbo…ask your loan officer for details. Loans that are jumbo, or exceed the conforming limits, are offered through MMC in a variety of fixed rate and adjustable rate options.

FHA Mortgages

Insured by the Department of HUD, FHA loans have become a staple for the first time homebuyer. FHA loans have more liberal guidelines with respect to income qualification, credit rating, and lower down payments. In the past few years, FHA’s popularity has risen to an all-time high.

VA Mortgages

Qualified veterans are eligible for 100% financing thanks to the Loan Guaranty program from the Department of Veteran’s Affairs. MMC is proud to service our military homebuyers.

Rural Housing Mortgages

Insured by USDA, this program is for lower income borrowers looking to purchase or refinance in areas designated 'rural'. 100% financing if available. Rural housing has lower credit standards and no money out of pocket if required.

State Housing Programs

Most states offer a subsidized housing program or “bond” loan. MMC has been an advocate of these programs and participates in providing this financing in most states we service. State Housing Programs are typically geared towards first time homebuyers or people who have not owned a home in the past three years. Certain target markets have more flexible parameters. Ask MMC if this is an option for you. We offer NHHFA and MassHousing financing.

Specialty Programs

MMC offers a wide variety of other mortgage programs including:

  • FHA 203K Limited Repair Program
  • Fannie Mae DU Refi Plus program
  • Freddie Mac Open Access refinance program
  • Seasonal Second Home Financing
  • Lender Paid Mortgage Insurance
  • VA IRRRLs
  • HARP Programs
  • FHA Streamlines