Freedom Mortgage Review: The Loan Products They Offer

freedom-mortgage-logoGetting a mortgage loan is probably the largest financial transaction you’ll ever make in your life so you want to make the right choice, which requires knowing what’s out there. Freedom Mortgage is a company that offers a wide array of loan products. Here is an overview of Freedom Mortgage and the many loan products they offer.

Overview of Freedom Mortgage

Founded in 1990, Freedom Mortgage is a private mortgage lending company that is licensed to do business in all 50 states. It also originates its loans to the guidelines set by Freddie Mac, Fannie Mae and Ginnie Mae.

Home Purchase Mortgage Loans

Freedom Mortgage offers potential home buyers a choice of mortgage loans. The most common are:

Fixed Rate Mortgage (FRM) – This loan has the same principal and interest rates throughout the term of the loan, regardless of how the market rates may fluctuate. Therefore, the monthly payments also stay the same.
Adjustable Rate Mortgage (ARM) – This loan begins with a lower interest rate and lower monthly payment, but the interest rate may change as the market rates change. This can result in a larger or a smaller monthly payment.
Fixed/ARM Hybrid Mortgage – This loan offers the best of both worlds so to speak. Initially, the loan starts with a lower interest rate and a fixed monthly payment, but both the principal and interest may change throughout the term of the loan.
Interest Only Mortgage – This loan requires the borrower to only make interest payments at the start of the loan and later refinance for the entire loan balance. An interest-only mortgage is typically used by borrowers who are building a home or are not financially stable at the start of the loan but will be in the near future.
Balloon Mortgage – This loan generally starts off with a lower interest rate and only goes for a certain term like 24 or 36 months. At the end of the term, the borrower refinances and gets a different mortgage loan based on current market rates.

Refinance Mortgage Loans

Freedom Mortgage offers refinance mortgage loans that are designed for borrowers who want to take advantage of lower interest rates, want to lower their monthly payments, extend the life of their loans or get additional cash from the equity of their homes. This type of refinance is generally referred to as a home equity loan. Refinance mortgage loans may be FRM or ARM loans.

HARP Mortgage Loan

The HARP (Home Affordable Refinance Program) is a program that, while offered through Freedom Mortgage, is actually administered by the Federal Housing Finance Agency. The HARP program is aimed at helping borrowers who are having trouble keeping their homes due to financial difficulties. Only certain loan types qualify to be part of the HARP program, specifically Freddie Mac or Fannie Mae. Borrowers also must meet certain guidelines to be eligible for HARP.

FHA Loans

FHA (Federal Housing Administration) loans are beneficial to potential home borrowers who have less than perfect credit and can’t afford a high down payment. Although the bank provides the loan, the FHA guarantees the loan. Borrowers who qualify for FHA loans may choose from ARM, FRM or a 203k rehabilitation loan, which allows borrowers to buy a home and get enough money to renovate it.

VA Loans

VA (Veteran’s Administration) loans are backed by the government but offered through Freedom Mortgage. They’d designed for veterans or their spouses and offer low interest and no down payments.

Although Freedom Mortgage has had 150 complaints lodged against it to the Better Business Bureau (BBB) in the last three years, the company continues to have an A rating with the BBB. Freedom Mortgage offers various types of loan products designed to meet the needs of all of its consumers.

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