Today's Mortgage Rates

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Let North Shore Mortgage help you select a loan to meet your particular situation. Read about the loan types here. Still not sure? Contact Us with your mortgage question.

Fixed Rate Mortgages

These loans have no government insurance or guarantees for the lender. Loan limit: $417,000

Best for people who:

• will be staying in their home at least 5 years
• have equity in a previous home to use for the down payment; or who are able to make at least a 20% cash downpayment (see Insured Conventional Loan if your downpayment is less than 20%)
• prefer a fixed payment over the life of the loan
• who are buying at a time when interest rates are relatively low

You may qualify if:

• Your monthly mortgage, taxes & insurance payment is 28% or less of gross income
• Your total monthly debt payments, including housing payments, are 36% or less of gross income
• You don't meet the above ratios but your downpayment is 25% or more, or you have other strong credit factors.

  Terms: 10, 15, 20, 30 years

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Adjustable Rate Mortgages (ARMs)

Rates typically start lower than fixed rate loans.

Best for people who:

• need lower monthly payments for the first few years
• need more borrowing power; initial interest rate is lower than fixed rate mortgages.
• want to qualify for the highest loan amount possible.

  Terms: You can choose an ARM that adjusts its interest rate every 1, 3, or 5 years.

  Or choose an ARM with a fixed rate for 3 or 5 years after which time it adjusts every year. These are referred to as 3/1 or 5/1 ARMs.

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Minnesota Power Leased Land Loans

Properties on land leased from Minnesota Power can be financed using our portfolio or "in-house" products. You can borrow up to 80% of the lesser of the sale price or value of the house.

Terms: You can choose from a 1/1, 3/1, 3/3, 5/1, 5/5 ARM with various term options.

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Jumbo Mortgage

Conventional loans for loan amounts more than $417,000, with higher interest rates than conventional loans.

Insured Conventional Loans

Identical to conventional loans, except for a downpayment requirement as low as 3%. Requires a mortgage insurance premium, payable monthly until equity in the home reaches 20% of the value.

Best for people who:

• have limited funds for a downpayment

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FHA Loans

Loans insured by the Federal Housing Administration (FHA). Requires a mortgage insurance premium at closing and for the life of the loan. Low downpayment.

Best for those who:

• have limited funds for a downpayment and closing costs (downpayment and closing cost requirement is as low as 3% of the purchase price)
• are first time homebuyers or may not qualify for other loan types.

You may qualify if:

• your monthly mortgage, insurance and taxes payment is 29% or less of gross income
• your total monthly debt payments, including the house payment, is 41% or less of gross income.

  Maximum loan amount: Varies among counties, with most at a maximum of $200,160.

  Mortgage Insurance: FHA requires a mortgage insurance payment at closing of 1.5% of the loan. This can be added to your loan. You also must pay a monthly premium of .5% of the balance of the loan for the life of the loan.

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VA Loans

For military veterans only. The Veteran's Administration (VA) guarantees these loans for the lender. No downpayment required.

Best for those who:

• are military veterans with limited funds for downpayment and closing costs (no downpayment is required).
• may not qualify for other loan types. Terms: available with a fixed interest rate. Fees: VA requires a "guaranty" fee of 2% of the loan at closing. This can be added to your loan.

  Maximum loan amount: $417,000, including the guaranty fee if it is added to the loan.

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Minnesota Housing Finance Loans

Offered through the Minnesota Housing Finance Agency (MHFA), these loans offer below market interest rates if you meet program guidelines.

Best for those who:

• are a first-time homebuyer or haven't owned a home in the last 3 years.
• have limited income and funds for downpayments and closing costs.

  Income eligibility is based on the gross income of those who will live in the house. In 2005, the maximum gross income is $54,000 for a 1-4 person household in most Minnesota counties. Maximum purchase price: $204,432 for most Minnesota counties.

  You can also get an interest free second mortgage to help with the downpayment, closing costs or monthly payments through the Homeownership Assistance Fund (HAF). For downpayment and closing costs, up to $3,000 is available in "entry cost assistance". In the early years of the mortgage $20 to $60 a month is available in "monthly payment assistance".

  If you receive HAF assistance, you can expect repayment of the loan when you sell the property. No monthly payments are required.

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