Loan Programs

Which program is right for me?

Years you plan to live

in the home

FIXED RATE   ( 30-yr, 15-yr )

With a fixed rate mortgage, you pay the same amount each month over the entire life of the loan. Fixed Rate Mortgages usually have a term of 15- or 30-years.

Advantages
1. Monthly payments are fixed over the life of the loan
2. Interest rate does not change
3. Protected if rates go up
4. Can refinance if rates go down

Disadvantages
1. Locked into higher interest rate
2. Higher mortgage payments
3. Rate does not drop if interest rates improve

Interest Only Programs

Interest only loan programs offer you a lower payment option by allowing you to pay the interest portion of the loan only, not the full principal. You can add an interest-only payment option to either your fixed or adjustable rate loan program.
 

Advantages
1. Lower monthly payments
2. Qualify for a higher loan amount
3. Option to pay the full principal and interest payment
4. Interest only payments for up to ten years

Disadvantages
1. Higher rates
2. Principal loan balance will not decrease during the interest only payment period
3. Payment will be higher for the remaining term

First Time Buyer Program

Advantages
1. Lower down payment
2. Easier to qualify
3. Lower rates may be available

Disadvantages
1. May be subject to income and property value limitations
2. Some government subsidized programs may generate a recapture tax if you sell the house too soon
3. Education courses may be required to qualify for these loans
 

ADJUSTABLE RATE MORTGAGE (ARM)  (10/1, 7/1, 5/1, 3/1, 6 Month, 1 Year)

An Adjustable Rate Mortgage (ARM) has a low introductory rate that allows you to make very low initial mortgage payments and has low qualifying rates that enable you to qualify for a larger loan.

Advantages
1. Lower initial monthly payment
2. Payments may go down if rates improve
3. May qualify for higher loan amounts

Disadvantages
1. Payments may change over time
2. More risk involved
3. Potential for higher payments if rates increase
 

Stated Income Programs

A Stated Income Program does not require income verification. You qualify for the loan based on your employment

Advantages

1. No need to verify income
2. Faster approval
3. No tax returns or pay stubs required
4. Good for borrowers who may not qualify with a full income documentation    program

Disadvantages
1. Higher rates
2. Larger down payment

Home - Loan Programs - Pre-Approval - Loan Info - Calculators - Company Info - Careers - Contact Us

2007 - Mount Vernon