Loan Process
Online Application
Pre-Qualify
Loan Programs
Purchase
Refinance
Calculators
Which Loan is Right for Me?| Years You plan to stay in the house | Recommended Program |
| 1-3 | 3/1 ARM, 1 year ARM or 6 month ARM |
| 3-5 | 5/1 ARM |
| 5-7 | 7/1 ARM, 1 year ARM or 6 month ARM |
| 7-10 | 10/1 ARM, 30 year fixed or 15 year fixed |
| 10+ | 30 year fixed or 15 year fixed |
| 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 rate goes 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 |
| 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 - Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option |
| First Time Buyer Programs | ||
|
- Lower down payment - Easier to qualify - Sometimes you may get lower rate |
- May be subject to income and property value limitations - Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option |
|
| Stated Income Programs | ||
|
- Don't need to verify income - Faster Approval |
- Higher rates - Higher down payment |
|
| No point, No fee Programs | ||
|
- No closing costs - Less money required to close |
- Higher rates - Higher payments |
|
| Imperfect Credit Programs | ||
|
- Potential for re-establishing credit if you pay your mortgage on time - When used for debt consolidation, you may be able to reduce your monthly debt payment |
- Higher rates - Terms may not be as favorable - Harder to get long term fixed loans - Loans may have prepayment penalties |
|
| 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 - Harder to refinance your first mortgage |
|
| Home Equity Fixed Loan | ||
|
- Fixed payments - Interest may be tax deductible |
- Higher interest rates than on first mortgages - Harder to refinance your first mortgage |
|