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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
COSI ARM
COFI ARM
MTA 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
- Must wait 12 days
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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
- Must wait 12 days
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Besides our standard loan programs, we also have a large number of unique programs to serve your needs:
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- 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!
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