Loan Programs

Which Loan is Right for Me?

Years You Plan to Stay in House	Recommended Program
1-3	3/1 ARM, 1 Year ARM, 6 Month ARM
3-5	5/1 ARM
5-7	7/1 ARM
7-10	10/1 ARM, 30 Year Fixed, 15 Year Fixed
10+	30 Year Fixed, 15 Year Fixed

 

Fixed Rate Mortgages

Advantages

• 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

Disadvantages

• Higher interest rate
• Higher mortgage payments
• Rate does not drop if interest rates improve

 

Adjustable Rate Mortgages

Advantages

• 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

Disadvantages

• More risk
• Payments may change over time
• Potential for high payments if rates go up

 

Balloon Mortgages

Advantages

• 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.

Disadvantages

• 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

Advantages

• Lower down payment
• Easier to qualify
• Sometimes you may get lower rate

Disadvantages

• 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

Advantages

• Don't need to verify income
• Faster approval

Disadvantages

• Higher rates
• Higher down payment

 

No point, No fee Programs

Advantages

• No closing costs
• Less money required to close

Disadvantages

• Higher rates
• Higher payments

 

Imperfect Credit Programs

Advantages

• 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

Disadvantages

• 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

Advantages

• You only borrow what you need
• Pay interest only on what you borrow
• Flexible access to funds
• Interest may be tax deductible

Disadvantages

• Rates can change. The maximum interest rate is normally high.
• Payments can change
• Harder to refinance your first mortgage

 

Home Equity Fixed Loan

Advantages

• Fixed payments
• Interest may be tax deductible

Disadvantages

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

Besides our standard loan programs, we also have a large number of unique 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!