Loan Program Features
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 interest rates increase
- Refinance if interest rates decrease
|
- 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 increase
|
First Time Buyer |
- Lower down payment
- Easier to qualify
- May get lower rates
|
- May be subject to income and property value limitations
- Some programs which have government subsidies may have a recapture tax if you sell the
house too early.
|
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