| Fixed Rate Mortgages |
30 year fixed
20 year fixed
15 year fixed |
- Monthly payments are fixed over the life of the loan
- Interest rate does not change
- Can refinance if rates go down
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- No interest rate risk
- No prepayment penalty
|
| Adjustable Rate Mortgages |
10/1 ARM
7/1 ARM
5/1 ARM
3/1 ARM |
- Lower initial monthly payment
- Lower payment for a fixed period of time
- Rates and payments may go down if rates improve
- May qualify for higher loan amounts
|
- Payments may change over time
- Potential for higher payments if rates go up
- Periodic and lifetime caps
|
| Balloon Mortgages |
| 15/30 year |
- Lower initial monthly payment
- Lower payment over a shorter period of time
- Interest rate risk may apply
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- Amortized based on 30 years with balloon payment due in 15 years
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| First Time Buyer Programs |
| |
- Lower down payment
- Easier to qualify
- Lower rates may be available
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- May be subject to income and property value limitations
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| FHA |
15 year fixed
30 year fixed
ARMs available |
- Lower downpayment
- Flexible underwriting guidelines
- Non occupant co-borrowers and co-signers permitted
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- All monies can be a gift
- Approved local and state government grants permitted
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| Reverse Mortgages |
| |
- No monthly payments
- No credit qualifying
- Age restrictions apply
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- Unused credit line appreciation
- Flexible terms available for tenure, term or credit line
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