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Which loan is right for me?



 We arrange but do not make loans

 
 

Loan Program Advantages Disadvantages
Fixed Rate Mortgages
  • 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
  • Higher interest rate
  • Higher mortgage payments
  • Rate does not drop if interest rates improve
 
Loan Program Advantages Disadvantages  
Balloon Mortgages
  • 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
 
 
Loan Program Advantages Disadvantages  
First Time Buyer Programs
  • Lower down payment
  • Easier to qualify
  • Lower rates may be available
  • May be subject to income and property value limitations
  • Some government subsidized programs may generate a recapture tax if you sell the house too soon
  • Education courses may be required to qualify for these loans
 
 
Loan Program Advantages Disadvantages  
Interest Only Programs
  • You have several payment options
  • Lower monthly payments
  • Qualify for a higher loan amount
  • Qualify at the interest only payment
  • 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
 
 
Loan Program Advantages Disadvantages  
No point, No fee Programs
  • No 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
  • Higher rates
  • Higher payments
  • Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you
  • Some require a prepayment penalty for the first one to five years
 
 
Loan Program Advantages Disadvantages  
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
  • May be free of closing costs
  • A good source for an emergency fund, if set up in advance
  • Can be used for debt consolidation and lower payments
  • Rates are usually lower than consumer loan or credit card rates
  • Rates can change. The maximum interest rate can be relatively high
  • Payments can change
  • Harder to refinance your first mortgage
 
 
Loan Program Advantages Disadvantages  
Home Equity Fixed Loan
  • Fixed payments
  • Interest may be tax deductible
  • Get cash out for any purpose
  • Higher interest rates compared to first mortgage
  • Harder to refinance your first mortgage
  • Interest is paid on the entire loan amount, compared to an equity line of credit
 
In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:
  • Purchase your home with no money down using VA or USDA financing if you qualify.
  • Debt consolidation programs.
  • Home Improvement loans.
  • You may qualify even if you've been turned down before!

 
 

 

Free Consultation

Complete this 30 second form to receive a no obligation consulation. We will analyze your situation and determine the best solution.

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Need More information

Call Us: (800) 254-3262
(401) 432-9903
Fax Us: (401) 382-6801
Email Us: info@capcityfinancial.com
576 Metacom Avenue Unit 8A
Bristol RI, 02809

 

Licensed Loan Broker in the following states: Rhode Island, Massachusetts MB2934 and Connecticut NMLS ID 2934

We arrange but do not make loans