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 rates go up
- Can refinance if rates go down
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- Higher interest rate
- Higher mortgage payments
- Rate does not drop if interest rates improve
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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
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- More risk
- Payments may change over time
- Potential for high payments if rates go up
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| Homepath and Homesteps |
- As low as 3% down
- No Motge insurance requires
- No appraisal cost
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- Only legible for Fannie Mae home (homepath)
- Only legible for Freddie Mace home (homesteps)
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| Rehabilitation loan |
- Buy a home that needs work
- Add space
- Finance future know cost
- Availbale for primary, vacation and investment homes
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- All repairs have to be determined prior to close
- Al repairs need to be complete wit in first 90 days
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| Imperfect Credit Programs |
- Potential for reestablishing credit if you pay your mortgage on time
- When used for debt consolidation, you may be able to reduce your monthly debt payment
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- Higher rates
- Terms may not be as favorable
- Harder to get long term fixed loans
- Loans may have prepayment penalties
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| 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
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- Rates can change. The maximum interest rate is normally high.
- Payments can change
- Harder to refinance your first mortgage
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| Home Equity Fixed Loan |
- Fixed payments
- Interest may be tax deductible
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- Higher interest rates than on 1st mortgages
- Harder to refinance your first mortgage
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