| Program |
Advantages |
Disadvantages |
| Fixed Mortgage
Rates |
| 30-year fixed
15-year fixed
10-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
1-year ARM
6-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 |
| 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 |
| Stated income programs |
- Don't need to verify income
- Faster approval
|
- Higher rates
- Higher down payment
|
| No point,no
fee programs |
| No point,no fee programs |
- No closing costs
- Less money required to close
|
- Higher rates
- Higher payments
|
Imperfect
credit programs |
| 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 rates
- Terms may not be as favorable
- Harder to get long term fixed loans
- Loans may have prepayment penalties
|
Home equity
line of credit |
| 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 deducible
|
- Rates can change. The maximum interest rate is normally
high
- Payments can change
- Harder to refinance your first mortgage
|
Home equity
fixed loan |
| Home equity fixed loan |
- Fixed payments
- Interest may be tax deducible
|
- Higher interest rates than on 1st mortgages
- Harder to refinance your first mortgage
|
Construction
loans |
| Construction loans |
- One loan, one closing
- One loan approval
- Choice of Prime minus 1% Construction Rate of 5/1, 7/1,
or 10/1 ARM Construction rate
- No rate risk for permanent
- Up to 18 month buildout
- LTVs to 90% of cost
- No prepayment penalties
- 30 year term plus construction time
|
|
|
Besides our standard loan programs,
we also have a large number of unique and creative 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!
- Less than perfect credit? We can help
|
