Years you plan to Stay in the house |
|
Recommended Program |
| 1-3 |
|
3/1 ARM, 1 year ARM or 6 month ARM |
| 3-5 |
|
5/1 ARM |
| 5-7 |
|
7/1 ARM |
| 7-10 |
|
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 |
-Monthly payments are fixed over the life of the loan |
-Higher interest rates |
| 15 year fixed |
-Interest rate does not change
-Protected of rates go up
-Can refinance if rates go down |
-Higher mortgage payments
-Rates does not drop if interest rates improve |
| Adjustable Rate Mortgage |
|
|
| 10/1/ARM |
-Low initial monthly payment |
-More risk |
| 7/1/ARM |
-Lower payment over a shorter period of time |
-Payments may change over time |
| 3/1/ARM |
-Rates and payments may go down if rates improve |
-Potential for high payments if rates go up |
| 1 year ARM |
-May qualify for higher loan amounts |
|
| 6 month ARM |
|
|
| 1 month ARM |
|
|
| Balloon Mortgages |
|
|
| 7 year |
-Lower initial monthly payment |
-Risk of rates being higher at the end of the initial fixed period |
| 5 year |
-Lower payment over a shorter period of time |
-Risk of foreclosure if you cannot make balloon payments or if you cannot exercise the conversion option. |
| First Time Buyer Programs |
|
|
| |
-Lower down payment
-Easier to qualify
-Sometimes you may get Lower rates |
-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 to 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 reestablishing credit if you pay your mortgage on time.
-When used for debt consolidation, you may be able to reduce your monthly debt payment |
-Higher rate 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 first mortgages
-Harder to refinance your first Mortgage |
Besides
our standard loan programs, we also have a large number of unique
programs to serve your needs:
- Purchase a house with 0% down
- Piggyback loans 80/10/10 or 80/15/5
- No PMI payments (even with 5% or 10% down
- Debt consolidation programs
- Home improvement loans
- Qualify even if you may have been turned down before!
