Which loan is right for me?
| Years you plan to stay in the home | Recommended program |
| 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 |
| Loan Program | Advantages | Disadvantages |
Fixed Rate Mortgages
- 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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- Beginning interest rate may be higher compared to adjustable rate mortgage though may average less in the long run
- Rate does not drop if interest rates improve
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| Loan Program | Advantages | Disadvantages |
Adjustable Rate Mortgages (ARM)
- 10/1 ARM
- 7/1 ARM
- 5/1 ARM
- 3/1 ARM
- 1 year ARM
- 6 month ARM
- 1 month ARM
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- Lower initial monthly payment
- Rates and payments may go down if rates improve
- May qualify for higher loan amounts
- 30 year term, no balloon payment
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- More risk
- Payments may change over time
- Potential for higher payments if rates increase
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| Loan Program | Advantages | Disadvantages |
| Balloon Mortgages
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- Lower initial monthly payment
- Lower payment for a predetermined 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, refinance, or exercise the conversion option
- Balloon payment requires you to sell or refinance after the term, as opposed to a 7/1 or 5/1 program with a 30 year term
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| Loan Program | Advantages | Disadvantages |
| First Time Buyer Programs |
- Lower down payment
- Easier to qualify
- Lower rates may be available
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- May be subject to income and property value limitations
- Some government subsidized programs may generate a recapture tax if you sell the house too soon
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| Loan Program | Advantages | Disadvantages |
| Stated Income Programs |
- Don't need to verify income
- Faster approval
- Good for borrowers who may not qualify with a full income documentation program / income tax forms, etc...
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- Rates may be higher in some cases
- Down payment may be more in some cases
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| Loan Program | Advantages | Disadvantages |
| Interest Only Programs |
- You have several payment options
- Lower monthly payments
- Qualify for a higher loan amount
- Qualify at the interest only payment
- Option to pay the full normal payment
- Interest only payments for up to ten years
|
- Higher rates
- Principal loan balance will not decrease during the interest only payment period
- Payment will be higher for the remaining term
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| Loan Program | Advantages | Disadvantages |
| No Point, No PMI, No Fee Programs |
- No out-of-pocket loan costs at closing
- Closing costs are paid from the lender rebate
- Less money required to close
- Refinance without increasing your loan amount
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- Higher rates but payments may be lower
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| Loan Program | Advantages | Disadvantages |
| Imperfect Credit Programs |
- Potential for reestablishing credit if you pay your mortgage on time, then refinace with lower rate and payment
- Fixed payments may be less than rent, rent never ends.
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- Compared to "perfect credit" loans you may have a higher interest rate
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| Loan Program | Advantages | Disadvantages |
| 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
- May be free of closing costs
- A good source for an emergency fund, if set up in advance
- Can be used for debt consolidation and lower payments
- Rates are usually lower than consumer loan or credit card rates
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- Rates can change unless you choose the Fixed Rate Home Equity Loan
- Payments can change unless you choose the Fixed Rate Home Equity Loan
- Harder to refinance your first mortgage
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| Loan Program | Advantages | Disadvantages |
| Home Equity Fixed Loan |
- Fixed payments
- Interest may be tax deductible
- Get cash out for any purpose
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- Interest rate may be more or less than your existing mortgage (if you have one)
- Harder to refinance your first mortgage
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In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:
- Lowest Conforming Fixed Rates, always below the National Average
- Special Loan Options, No PMI, No Down Payment, No Closing Costs
- Purchase your home with no down payment, up to 100% financing
- Approval may be possible even if you have had bankrupcty, repos, charge offs, etc...
- You may qualify even if you've been turned down before!
- Home Equity / Debt Consolidation programs
APPLY NOW
Or Give Us A Call At 979-691-2692 or Send Us An E-Mail
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