Which loan is right for me?
| Years you plan to stay in the home | Recommended program |
| 3-5 years |
5/1 ARM 7/1 ARM |
| 5-7 years |
7/1 ARM 10/1 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
|
- 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
|
|
| Loan Program | Advantages | Disadvantages |
Adjustable Rate Mortgages (ARM)
- 10/1 ARM
- 7/1 ARM
- 5/1 ARM
- 1 year ARM
- 6 month ARM
- 1 month ARM
|
- 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
|
- More risk
- Payments may change over time
- Potential for higher payments if rates increase
|
|
|
| Loan Program | Advantages | Disadvantages |
| Stated Income Programs |
- Don't need to verify income
|
- Higher rates
- Higher down payment
|
|
| Loan Program | Advantages | Disadvantages |
| Interest Only Programs |
- You have several payment options
- Lower monthly payments
- Option to pay the full normal payment
- Interest only payments for up to 15 years
|
- Higher rates
- Principal loan balance will not decrease during the interest only payment period
- Payment will be higher for the remaining term
|
|
| Loan Program | Advantages | Disadvantages |
| No point, 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
|
- Higher rates
- Higher payments
- Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you
- Some require a prepayment penalty.
|
|
In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:
- Purchase your home with no down payment using Private Mortgage Insurance (PMI) or Lender-paid Mortgage Insurance (MI).
- Debt consolidation programs.
- Home Improvement loans.
- You may qualify even if you've been turned down before!
|
