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Loan
Programs
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Advantages
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Disadvantages
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Fixed Rate Mortgages
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30
year fixed
15 year fixed
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- 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
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- Higher
interest rate
- Higher
mortgage payments
- Rate
does not drop if interest rates improve
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Adjustable Rate Mortgages
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10/1
ARM
7/1 ARM
3/1 ARM
1 year ARM
6 month ARM
1 month ARM
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- 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
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- More
risk
- Payments
may change over time
- Potential
for high payments if rates go up
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Balloon Mortgages
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7
year
5 year
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- 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.
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- 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
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First Time Buyer Programs
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- Lower
down payment
- Easier
to qualify
- Sometimes
you may get lower rate
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- 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.
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Stated Income Programs
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- Don’t
need to verify income
- Faster
approval
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- Higher
rates
- Higher
down payment
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No point, No fee Programs
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- No
closing costs
- Less
money required to close
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- Higher
rates
- Higher
payments
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Imperfect Credit Programs
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- 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
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- Higher
rates
- Terms
may not be as favorable
- Harder
to get long term fixed loans
- Loans
may have prepayment penalties
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Home Equity Line of Credit
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- You
only borrow what you need
- Pay
interest only on what you borrow
- Flexible
access to funds
- Interest
may be tax deductible
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- Rates
can change. The maximum interest rate is
normally high.
- Payments
can change
- Harder
to refinance your first mortgage
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Home Equity Fixed Loan
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- Fixed
payments
- Interest
may be tax deductible
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- Higher
interest rates than on 1st
mortgages
- Harder
to refinance your first mortgage
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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
- 100%
re-financing with less the perfect credit
- Qualify
even if you may have been turned down
before!
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