Loan Programs

Which Loan is Right for Me?

Years You Plan to Stay in House Recommended Program
1-3 3/1 ARM / 30 Year Fixed
3-5 5/1 ARM / 30 Year Fixed
5-7 7/1 ARM / 30 Year Fixed
7-10 10/1 ARM, 15 / 20 / 30 Year Fixed
10+ 30 Year Fixed, 20 Year Fixed, 15 Year Fixed

Fixed Rate Mortgages

Advantages

  • 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

Disadvantages

  • Higher interest rate
  • Higher mortgage payments
  • Rate does not drop if interest rates improve

Adjustable Rate Mortgages

Advantages

  • 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

 

First Time Buyer Programs

Advantages

  • Lower down payment
  • Easier to qualify
  • Sometimes you may get lower rate

Disadvantages

  • 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

No point, No fee Programs

Advantages

  • No closing costs
  • Less money required to close

Disadvantages

  • Higher rates
  • Higher payments

FHA / VA Programs

Advantages

  • More lenient underwriting guidelines, to qualify for loans
  • Higher LTV loan value because of FHA or VA guarantee.
  • Low interest rates
  • No down payment with VA loans and only 3.5% down on FHA

Disadvantages

  • Limited programs
  • FHA / VA funding fees
  • Not many, as government programs are good for many borrowers

Home Equity Line of Credit

Advantages

  • You only borrow what you need
  • Pay interest only on what you borrow
  • Flexible access to funds
  • Interest may be tax deductible

Disadvantages

  • Rates can change. The maximum interest rate is normally high.
  • Payments can change
  • Harder to refinance your first mortgage

Home Equity Fixed Loan

Advantages

  • Fixed payments
  • Interest may be tax deductible

Disadvantages

  • 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:

  • Piggy back loans are still available for lower interest rates
  • Reverse Mortgage programs for homeowners 62 or older
  • Debt consolidation programs
  • Home Improvement loans, as the FannieMae Rehab Construction loan
  • Call us for any question you may have concerning home financing. We are here to help you finance your dream home.