Loan Programs


How long do you plan to stay in your 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 Monthly payments are fixed over the life of the loan Higher interest rate
30 year fixed Interest rate does not change Higher mortgage payments
15 year fixed Protected if rates go up Rate does not drop if interest rates improve
  Can refinance if rates go down  
Loan Program Advantages Disadvantages
Adjustable Rate Mortgages (ARM) Lower initial monthly payment More risk
10/1 ARM Rates and payments may go down if rates improve Payments may change over time
7/1 ARM May qualify for higher loan amounts Potential for higher payments if rates increase
5/1 ARM 30 year term, no balloon payment  
3/1 ARM    
1 year ARM    
6 month ARM    
1 month ARM    
Loan Program Advantages Disadvantages
Balloon Mortgages Lower initial monthly payment Risk of rates being higher at the end of the initial fixed period
7 year Lower payment for a predetermined period of time Risk of foreclosure if you cannot make balloon payment, refinance, or exercise the conversion option
5 year Many balloon mortgages offer the option to convert to a new loan after the initial term 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
Loan Program Advantages Disadvantages
First Time Buyer Programs Lower down payment May be subject to income and property value limitations
  Easier to qualify Some government subsidized programs may generate a recapture tax if you sell the house too soon
  Lower rates may be available Education courses may be required to qualify for these loans
Loan Program Advantages Disadvantages
Stated Income Programs Don't need to verify income Higher rates
  Faster approval Higher down payment
  Good for borrowers who may not qualify with a full income documentation program  
Loan Program Advantages Disadvantages
Interest Only Programs You have several payment options Higher rates
  Lower monthly payments Principal loan balance will not decrease during the interest only payment period
  Qualify for a higher loan amount Payment will be higher for the remaining term
  Qualify at the interest only payment  
  Option to pay the full normal payment  
  Interest only payments for up to ten years  
Loan Program Advantages Disadvantages
No point, No fee Programs No out-of-pocket loan costs at closing Higher rates
  Closing costs are paid from the lender rebate Higher payments
  Less money required to close Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you
  Refinance without increasing your loan amount Some require a prepayment penalty for the first one to five years
Loan Program Advantages Disadvantages
Imperfect Credit Programs Potential for reestablishing credit if you pay your mortgage on time Higher rates
  When used for debt consolidation, you may be able to reduce your monthly debt payment Terms may not be as favorable
    Harder to get long-term fixed loans
    Loans may have prepayment penalties
Loan Program Advantages Disadvantages
Home Equity Line of Credit You only borrow what you need Rates can change. The maximum interest rate can be relatively high
  Pay interest only on what you borrow Payments can change
  Flexible access to funds Harder to refinance your first mortgage
  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  
Loan Program Advantages Disadvantages
Home Equity Fixed Loan Fixed payments Higher interest rates compared to first mortgage
  Interest may be tax deductible Harder to refinance your first mortgage
  Get cash out for any purpose Interest is paid on the entire loan amount, compared to an equity line of credit
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).
·Piggyback loans: 80-10-10 or 80-15-5.  Avoid PMI payments by using Lender-paid MI.
·Debt consolidation programs.    
·Home Improvement and new construction loans.  
·Refinance programs.    
·Reverse mortgages (must be 62+ years of age).  

·You may qualify even if you've been turned down before!


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