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Which Loan is Right for Me?
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Years Planning to Keep Property
Years Keeping Property
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Typically These are the Most Recommended Programs by Most Brokers & Lenders - However, rates are low - perhaps the fixed rate is best, or an optional Interest Only Program???
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1-3 |
3/1 ARM, 1 year ARM or 6 month ARM |
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3-5 |
5/1 ARM |
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5-7 |
7/1 ARM |
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7-10 |
10/1 ARM, 30 year fixed or 15 year fixed |
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10+ |
30 year fixed or 15 year fixed
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Loan Programs
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Advantages
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Disadvantages
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Fixed Rate Mortgages
30 year fixed
15 year fixed
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- 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
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- Higher interest rate
- Higher mortgage payments
- Rate does not drop if interest rates improve
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Adjustable Rate Mortgages
10/1 ARM
7/1 ARM
5/1 ARM
3/1 ARM
1 year ARM
6 month ARM
1 month ARM
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- 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
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- More risk
- Payments may change over time
- Potential for high payments if rates go up
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Balloon Mortgages
7 year
5 year
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- 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.
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- 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
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First Time Buyer Programs
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- Lower down payment
- Easier to qualify
- Sometimes you may get lower rate
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- 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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Stated Income Programs
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- Don't need to verify income
- Faster approval
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- Higher rates
- Higher down payment
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No Point,
No Fee Programs
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- No closing costs
- Less money required to close
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- Higher rates
- Higher payments
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Imperfect Credit Programs
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- 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
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- Higher rates
- Terms may not be as favorable
- Harder to get long term fixed loans
- Loans may have prepayment penalties
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Home Equity Line of Credit (HELOC)
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- You only borrow what you need
- Pay interest only on what you borrow
- Flexible access to funds
- Interest may be tax deductible
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- Rates can change. The maximum interest rate is normally high.
- Payments can change
- Harder to refinance your first mortgage
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Home Equity Fixed Loan
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- Fixed payments
- Interest may be tax deductible
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- 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!
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Call us for more information and a free consultation.
When you get a Florida mortgage through us, we want it
to be a great experience!
Contact us directly at (561) 228-8563 or (888) 431-6387,
ask us a question
or two. Or, click on our Live Chat to
message us now!
We look forward to hearing from you,
our most important client!
Page Updated: 07/31/2007 First Published: 2001 |
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