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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- Slightly higher interest rates than ARM's
- Slightly higher mortgage payments
- Rate does not drop if interest rates improve
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Adjustable Rate Mortgages (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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| No point, No fee Programs |
- No closing costs
- Less money required to close
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- Slightly higher interest rates
- Slightly higher payments
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| Stated Income Programs |
- Income is not verified
- Faster approval
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- Slightly higher interest rates
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| No Income / No Asset Programs |
- Only employment is verified
- Income and Assets are NOT verified
- Faster approval
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| No Documentation |
- Faster approval
- Income, Assets and Employment are NOT verified
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- Higher rates
- Higher payments
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| 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
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- Slightly higher interest rates
- Terms may not be as favorable
- Loans may have prepayment penalties
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| Home Equity Line of Credit |
- You only borrow what you need
- Pay interest only on what you borrow
- Low Cost or No Cost Loan Programs
- Flexible access to funds
- Interest may be tax deductible
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- Rates can change.
- The interest rate is normally tied to the Prime Rate Index.
- Payments can change
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| Interest Only |
- Lower payment
- Potentially qualify for more home
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