Which loan is right for me?
| Years you plan to stay in the home | Recommended program |
| 1-3 years |
3/1 ARM, 1 year ARM or 6 month ARM |
| 3-5 years |
5/1 ARM |
| 5-7 years |
7/1 ARM |
| 7-10 years |
10/1 ARM, 30 year fixed or 15 year fixed |
| 10+ years |
30 year fixed or 15 year fixed |
| Loan Program | Advantages | Disadvantages |
Fixed Rate Mortgages
- 30 year fixed
- 20 year fixed
- 15 year fixed
- 10 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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| Loan Program | Advantages | Disadvantages |
Adjustable Rate Mortgages (ARM)
- 10/1 ARM
- 7/1 ARM
- 5/1 ARM
- 3/1 ARM
- 1 year ARM
- 6 month ARM
- 1 month ARM
|
- Lower initial monthly payment
- Rates and payments may go down if rates improve
- May qualify for higher loan amounts
- 30 year term, no balloon payment
|
- Some risk
- Payments may change over time
- Potential for higher payments if rates increase
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| Loan Program | Advantages | Disadvantages |
| Balloon Mortgages
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- Lower initial monthly payment
- Lower payment for a predetermined 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
- Risk of foreclosure if you cannot make balloon payment, refinance, or exercise the conversion option
- Balloon payment requires you to sell or refinance after the term, as opposed to a 7/1 or 5/1 program with a 30 year term
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| Loan Program | Advantages | Disadvantages |
| First Time Buyer Programs |
- None, first time buyer's are considered high risk
|
- May be subject to income and property value limitations
- Education courses may be required to qualify for these loans
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| Loan Program | Advantages | Disadvantages |
| Reverse Mortgage |
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| Loan Program | Advantages | Disadvantages |
| Interest Only Programs |
- You have several payment options
- Lower monthly payments
- Option to pay the full normal payment
- Interest only payments for up to ten years
|
- Higher rates
- Principal loan balance will not decrease during the interest only payment period
- Payment will be higher for the remaining term
|
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| Loan Program | Advantages | Disadvantages |
| No point, No fee Programs |
- Minimal out-of-pocket loan costs at closing
- Closing costs are paid from the lender rebate
- Less money required to close
- Refinance without increasing your loan amount as much
|
- Higher rates
- Higher payments
|
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| Loan Program | Advantages | Disadvantages |
| Imperfect Credit Programs |
- None, we do not do subprime financing at all
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| Loan Program | Advantages | Disadvantages |
| Home Equity Line of Credit |
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| Loan Program | Advantages | Disadvantages |
| Home Equity Fixed Loan |
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In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:
