Loan Programs
















There are many loans to choose from here is a guide to
see which one might be best for you.
























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+ Years 30 year fixed or 15 year
fixed












































































































































Fixed Rate Mortgages
Loan Programs Advantages Disadvantages
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
Loan Programs Advantages Disadvantages
10/1 ARM

7/1 ARM

3/1 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
Loan Programs Advantages Disadvantages
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
Loan Programs Advantages Disadvantages
 

  • 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
Loan Programs Advantages Disadvantages
 

  • Don稚 need to verify income
  • Faster approval




  • Higher rates
  • Higher down payment


No point, No fee Programs
Loan Programs Advantages Disadvantages
 

  • No closing costs
  • Less money required to close




  • Higher rates
  • Higher payments


Less than Perfect
Credit Programs
Loan Programs Advantages Disadvantages
 

  • 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
Loan Programs Advantages Disadvantages
 

  • 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
Loan Programs Advantages Disadvantages
 

  • Fixed payments
  • Interest may be tax deductible




  • Higher interest rates than on 1st
    mortgages
  • Harder to refinance your first mortgage

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