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In the past every home owner got the same loan: a 30 year fixed mortgage. Today there are many different loan programs and choosing the right one could save you hundreds of dollars on your monthly payments.
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How Long Do You Plan
On Living In The House? |
We Recommend |
| Not Very Long (1-3 Years) |
3/1 ARM, 1 year ARM or 6 month ARM |
| A few years (3-5 Years) |
5/1 ARM |
| At least 5 years (5-7 years) |
7/1 ARM |
| Around 10 years ( 7-10 years) |
10/1 ARM, 30 yr fixed or 15 yr fixed |
| A long time (10 plus years) |
30 year fixed or 15 year fixed |
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Loan Programs
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Advantages
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Disadvantages |
30 year Fixed
15 year Fixed |
- Monthly payments won't change
- Interest rate Fixed
- 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 (ARMS) |
- 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 |
- 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
- Sometimes inversion features are higher than current rates
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| First Time Buyer Programs |
- 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
- Rates can sometimes be higher.
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| Stated Income Programs |
- 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 |
- No closing costs
- Less money required to close
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- Higher rates
- Higher payments
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| 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
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- Higher rates
- Terms may not be as favorable
- Loans may have prepayment penalties
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| 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
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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 |
- 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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| In Addition to these standard loan programs we offer a large number of specialized loans to fit your needs: |
· Purchase a home with Zero Money 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 with low fico score or even if you've been turned down before!
· 100% investment property loans
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