Finding the right loan
will make all the difference during your lending process. The information
we have here is designed to inform and help you make the right decision.
Which
loan is right for me?
Years
you plan to stay in the house
Recommended
program
1-3
years
3/1
ARM, 1 year ARM or 6 month ARM
3-5
years
5/1
ARM
5-7
years
7/1
ARM
7-10
years
10/1
ARM, 30 year fixed or 15 year fixed
10+
30
year fixed or 15 year fixed
Loan
Programs
Advantages
Disadvantages
Fixed
Rate Mortgages
30
year fixed
15 year fixed
Monthly
payments are fixed over the life of the loan
Interest
rate does not change
Protected
if rates go up
Can
refinance if rates go down
Higher
interest rate
Higher
mortgage payments
Rate
does not drop if interest rates improve
Adjustable
Rate Mortgages
10/1
ARM
7/1 ARM
3/1 ARM
5/1 ARM
1 year ARM
6 month ARM
1 month ARM
Lower
initial monthly payment
Lower
payment over a shorter period of time
Rates
and payments may go down if rates improve
May
qualify for higher loan amounts
More
risk
Payments
may change over time
Potential
for high payments if rates go up
Balloon
Mortgages
7
year
5 year
Lower
initial monthly payment
Lower
payment over a shorter period of time
Many
balloon mortgages offer the option to convert to a new loan
after the initial term.
Risk
of rates being higher at the end of the initial fixed period
Risk
of foreclosure if you cannot make balloon payment or if
you cannot refinance or if you cannot exercise the conversion
option
First
Time Buyer Programs
Lower
down payment
Easier
to qualify
Sometimes
you may get lower rate
May
be subject to income and property value limitations
Some
programs which have government subsidies may have a recapture
tax if you sell the house too early.
Stated
Income Programs
Don't
need to verify income
Faster
approval
Higher
rates
Higher
down payment
No
point, No fee Programs
No
closing costs
Less
money required to close
Higher
rates
Higher
payments
Imperfect
Credit Programs
Potential
for re-establishing credit if you pay your mortgage on time.
When
used for debt consolidation, you may be able to reduce your
monthly debt payment
Higher
rates
Terms
may not be as favorable
Harder
to get long term fixed loans
Loans
may have prepayment penalties
Home
Equity Line of Credit
You
only borrow what you need
Pay
interest only on what you borrow
Flexible
access to funds
Interest
may be tax deductible
Rates
can change. The maximum interest rate is normally high.
Payments
can change
Harder
to refinance your first mortgage
Home
Equity Fixed Loan
Fixed
payments
Interest
may be tax deductible
Higher
interest rates than on 1st mortgages
Harder
to refinance your first mortgage
In
addition to the standard loan programs, we also offer an array of
exceptional loan programs to meet your needs. Bad Credit, No Credit,
Investments, No Money Down and a like, we have a program that
is right for you.
