Loan Options
Which loan is right for me?
| Years you plan to stay in the house | Recommended program |
| 1-3 | 3/1 ARM, 1 year ARM or 6 month ARM |
| 3-5 | 5/1 ARM |
| 5-7 | 7/1 ARM |
| 7-10 | 10/1 ARM, 30 year fixed or 15 year fixed |
| 10+ | 30 year fixed or 15 year fixed |
| Loan Programs | 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 Programs | Advantages | Disadvantages |
| Adjustable Rate Mortgages | ||
| 10/1 ARM 7/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 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 |
| Loan Programs | Advantages | Disadvantages |
| 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 |
| Loan Programs | Advantages | Disadvantages |
| First Time Buyer Programs | ||
| • Lower down payment • Easier to qualify • Sometimes you may get lower rate |
• 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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| Loan Programs | Advantages | Disadvantages |
| Stated Income Programs | ||
| • Don’t need to verify income • Faster approval |
• Higher rates • Higher down payment |
|
| Loan Programs | Advantages | Disadvantages |
| No point, No fee Programs | ||
| • No closing costs • Less money required to close |
• Higher rates • Higher payments |
|
| Loan Programs | Advantages | Disadvantages |
| 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 |
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| Loan Programs | 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 |
• Rates can change. The maximum interest rate is normally high. • Payments can change • Harder to refinance your first mortgage |
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| Loan Programs | Advantages | Disadvantages |
| Home Equity Fixed Loan | ||
| • Fixed payments • Interest may be tax deductible |
• Higher interest rates than on 1st mortgages • Harder to refinance your first mortgage |
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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!
