Loan Programs

Advantages

Disadvantages

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 year ARM

6 month ARM

1 month ARM

• 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, but caps prevent serious risk

Balloon Mortgages

7 year

5 year

• 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
• You must make balloon payment,  refinance or exercise the conversion option
• Caps prevent serious risk of rate increase

First Time Buyer Programs

• Allows 0 downpayment
• 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.

Construction Loan Programs

• Use our land+construction and permanent financing rolled into one loan
• Pay only for one closing
• Lock the rate any time during construction
• Only pay interest payments during construction
• Flexibility to select single mortgage payment for current home or pay current and partial payment on new construction

• May require 10 - 20% downpayment
• Final rate may be .125-.25% higher than best market rate at time of permanent financing closing

Commercial Loan Programs

• Provide as little as 10% down payment
• Construction loans with 30 yr fixed rate & 30 yr amortization
• Lending requirements based primarily on property and its rent roll

• Some programs have prepayment penalties
• Higher costs for appraisals compared to residential
• Additional property requirements such as EPA report

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

Home Equity Fixed Loan

• Fixed payments
• Interest may be tax deductible

• Higher interest rate than Equity loan and can be higher than on 1^st mortgages

Credit Repair

• Increase credit by 40-100 points within 6 months
• Flexibility to choose process- complete required steps yourself or use our monthly provider service at $40/ mo.
• Usually repair 3-4 credit lines per month

• Can take 6-12 months to repair credit by 100 points
• Requires borrower to provide some documents