| Which
Loan Is Right For You? |
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| The
following chart will provide more insight on the different
loan programs to help you learn which program might be
best for you. Contact me today
to discuss your needs and how the various loan programs
impact you financially. |
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Years you plan to stay
in the house |
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3/1
ARM, 1 year ARM or 6 month |
|
3-5 |
5/1
ARM |
|
5-7 |
7/1
ARM |
|
7-10 |
10/1
ARM, 30 yr fixed or 15 yr fixed |
|
10+ |
30
year fixed or 15 year fixed |
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| |
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| 30/15 Year Fixed |
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| Following
are the differences between 30-year and 15-year loan programs.
Use this chart to learn which one makes the most sense
for your financial situation. |
|
| Loan
Program |
Advantages
|
Disadvantages |
| 30
year fixed |
Monthly payments
are fixed |
Higher interest
rate |
| 15
year fixed |
Interest
rate does not change |
Higher
mortgage payments |
| |
Protected
if rates go up |
Rate
does not drop if interest rates improve |
| |
Can
refinance if rates go down |
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| Adjustable Rate
Mortgages (ARM) |
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| Also
known as an ARM, this program is ideal for someone who
may need a short term loan, with low monthly payments. |
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| Loan
Program |
Advantages
|
Disadvantages |
Adjustable
Rate
Mortgages |
Lower initial monthly
payment |
More risk |
| |
Lower
payment over shorter period of time |
Payments
may change over time |
| |
Rates
and payments may go down if rates improve |
Potential
for high payments if rates go up |
| |
May
qualify for higher loan amounts |
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| First Time Home
Buyers Programs |
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|
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| If
this is your first home purchase, they may be unique opportunities
for you to save on your down payment. |
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|
| Loan
Program |
Advantages
|
Disadvantages |
| First
Time Buyer Programs |
Lower down payment |
May be subject to
income and property value limitations |
| |
Easier
to qualify |
Some
programs which have government subsidies may have
a recapture tax if you sell the house too early. |
| |
Sometimes
you may get a lower rate |
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| Stated Income
Programs |
|
| This
program is designed for someone who is self-employed or
can’t provide documentation of his or her income.
|
| Loan
Program |
Advantages
|
Disadvantages |
| Stated
Income Programs |
Don't need to verify
income |
Higher rates |
|
|
Faster approval
|
Higher down payment |
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| |
|
|
| No Point, No
Fee Programs |
|
| This
program is ideal if you’re looking to save as much
money upfront, as possible. |
| Loan
Program |
Advantages
|
Disadvantages |
| No
Point, No Fee Programs |
No closing costs |
Higher rates |
|
|
Less money required
to close
|
Higher down payment |
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| |
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| Imperfect Credit
Programs |
|
| Even
if your credit is not in the best shape, there are loan
programs available to you. I’ll work with you to
find the lowest rate possible. |
| Loan
Program |
Advantages
|
Disadvantages |
| Imperfect
Credit Programs |
Potential for reestablishing
credit if you pay your mortgage on time. |
Higher rates |
| |
When
used for debt consolidation, you may be able to
reduce your monthly debt payment |
Terms may not be
as favorable |
| |
|
Harder to get long
term fixed loans |
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|
Loans may have prepayment
penalties |
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