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Type Of Morgages
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Advantages
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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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Adjustable Rate Mortgages
10/1 ARM
7/1 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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Balloon Mortgages
7 year
5 year
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- 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.
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First Time Buyer Programs
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- No down payment
- Lower monthly payment
- Up to 6% seller paid closing
costs.
- Great way to get into a home
and start building equity.
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Stated Income Programs
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- Don’t need to verify income
- Faster approval
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No point, No fee Programs
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- No closing costs
- Less money required to close
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Imperfect Credit Programs
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- 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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Home Equity Line of Credit
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- You only borrow what you need
- Pay interest only on what you
borrow
- Flexible access to funds
- Interest may be tax deductible
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Home Equity Fixed Loan
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- Fixed payments
- Interest may be tax deductible
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