| Loan Programs |
Advantages |
Disadvantages |
| |
|
|
Fixed Rate Mortgages
 |
40 year fixed |
|
30 year
fixed |
|
15 year fixed |
|
10 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 than ARM |
|
Higher mortgage
payments than ARM |
|
Rate does not drop if interest rates improve |
|
|
|
|
Adjustable Rate Mortgages
|
10/1
ARM |
|
7/1 ARM |
|
5/1 ARM |
|
3/1 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 |
|
|
More risk |
|
Payments may change over time |
|
Potential for high payments if rates go up |
|
|
|
|
Interest
Only Mortgages
|
Fixed |
|
Adjustable |
|
|
Lower
monthly payments |
|
May be able to recast
loans for lower monthly payment |
|
May have larger tax
deduction |
|
See fixed and adjustable
products |
|
|
No Payment
of principle |
|
Not a wide variety
of loan programs available |
|
Slightly higher rate |
|
See fixed and adjustable
products |
|
|
|
|
| First Time Buyer Programs |
|
Lower down payment |
|
Easier to qualify |
|
Lower rates |
|
|
Subject
to income and/or georgraphic limitations |
|
Limitations on loan
size |
|
May not be permitted
to add a 2nd mortgage or HELOC |
|
|
|
|
| Stated Income Programs |
|
Don't
need to verify income |
|
|
Higher
rates |
|
Higher down payment |
|
|
|
|
| No
Documentation Programs |
|
No employment,
income, or asset information on application |
|
|
Higher
rates |
|
Higher payments |
|
Higher down payment |
|
Better credit required |
|
|
|
|
| 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 |
|
|
|
|
| Home Equity Line of Credit |
|
You only borrow what you need |
|
Only pay interest
on the balance owed on your account |
|
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 |
|
|
|
|
| Home Equity Fixed Loan |
|
Fixed payments |
|
Interest may be tax deductible |
|
|
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:
