| Loan Program |
Advantages |
Disadvantages |
| Fixed Rate Mortgages |
- 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
|
| Variable Rate Mortgages |
- 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
|
| Balloon Mortgages |
- 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
|
| First Time Buyer Programs |
- 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 Programs |
- Don't need to verify income
- Faster approval
|
- Higher rates
- Higher down payments
|
| No Point, No Fee Programs |
- No closing costs
- Less money to close
|
- Higher rates
- Higher payments
|
| 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
- Loan payments have prepayment penalities
|
In addition to 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!
|
