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

*Adjustable Rate Mortgages

• 10/1 ARM

• 7/1 ARM

• 3/1 ARM

• 1/1 ARM

• Option to convert to a new loan after the initial term

• Lower initial monthly payment

• Rates and payments may go down if rates improve at end on ARM term

• May qualify for higher loan amounts

• Payments may change after initial term

• Potential for high payments if rates go up most do have caps to amount of increase and you can always refinance

• Cost to refinance if rates have gone up

*these are not adjustable during first term... example 5/1 ARM does NOT change interest rate during the first five years. On this example of the interest rate, based on the Libor, it might fluctuate the sixth year.  If so, there is a cap on the interest that would not allow the rate to exceed that cap. You always have the option to refinance into another loan program, but must consider closing costs to do so.

There are ARM's that fluctuate during term, We rarely do these because they are so volatile!

Interest Only

adjustable rate mortgage tied to the libor index with caps on increases

• Payments are considerably less and intended for those in areas with high appreciation

• If rates go up cost to refinance must be used for total loan cost

First Time Buyer

• Lower down payment

• Easier to qualify

• Sometimes you may get lower rates

• 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

• Don’t need to verify income

• Faster approval

• Higher rates

• Higher down payment

No point, No fee

• No closing costs

• Less money required to close

• Slightly Higher rates

• Higher payments

Imperfect Credit

• 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

• 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

Home Equity
Fixed Loan

• Fixed payments

• Interest may be tax deductible

• Higher interest rates than on 1^st 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

• Piggyback loans 80-10-10 or 80-15-5

• No PMI payments even with 5% or 10% down

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