Which loan is right for me?
We arrange but do not make loans
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Loan Program |
Advantages |
Disadvantages |
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Fixed Rate Mortgages |
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Monthly payments are fixed over the life of the loan
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Interest rate does not change
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Protected if rates go up
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Can refinance if rates go down
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Higher interest rate
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Higher mortgage payments
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Rate does not drop if interest rates improve
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Loan Program |
Advantages |
Disadvantages |
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Balloon Mortgages |
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Lower initial monthly payment
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Lower payment for a predetermined period of time
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Many balloon mortgages offer the option to convert to a new loan after the initial term
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Risk of rates being higher at the end of the initial fixed period
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Risk of foreclosure if you cannot make balloon payment, refinance, or exercise the conversion option
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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 |
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First Time Buyer Programs |
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Lower down payment
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Easier to qualify
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Lower rates may be available
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May be subject to income and property value limitations
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Some government subsidized programs may generate a recapture tax if you sell the house too soon
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Education courses may be required to qualify for these loans
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Loan Program |
Advantages |
Disadvantages |
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Interest Only Programs |
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You have several payment options
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Lower monthly payments
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Qualify for a higher loan amount
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Qualify at the interest only payment
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Option to pay the full normal payment
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Interest only payments for up to ten years
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Higher rates
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Principal loan balance will not decrease during the interest only payment period
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Payment will be higher for the remaining term
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Loan Program |
Advantages |
Disadvantages |
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No point, No fee Programs |
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No out-of-pocket loan costs at closing
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Closing costs are paid from the lender rebate
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Less money required to close
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Refinance without increasing your loan amount
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Higher rates
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Higher payments
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Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you
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Some require a prepayment penalty for the first one to five years
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Loan Program |
Advantages |
Disadvantages |
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Home Equity Line of Credit |
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You only borrow what you need
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Pay interest only on what you borrow
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Flexible access to funds
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Interest may be tax deductible
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May be free of closing costs
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A good source for an emergency fund, if set up in advance
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Can be used for debt consolidation and lower payments
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Rates are usually lower than consumer loan or credit card rates
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Rates can change. The maximum interest rate can be relatively high
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Payments can change
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Harder to refinance your first mortgage
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Loan Program |
Advantages |
Disadvantages |
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Home Equity Fixed Loan |
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Fixed payments
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Interest may be tax deductible
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Get cash out for any purpose
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Higher interest rates compared to first mortgage
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Harder to refinance your first mortgage
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Interest is paid on the entire loan amount, compared to an equity line of credit
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In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:
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Purchase your home with no money down using VA or USDA financing if you qualify.
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Debt consolidation programs.
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Home Improvement loans.
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You may qualify even if you've been turned down before!
