|
Loan Programs |
Advantages |
Disadvantages |
| |
|
Adjustable Rate Mortgage (ARM) |
6 month ARM
12 month ARM |
- Six and twelve month ARMs
can significantly lower a mortgage payment for six or twelve
months. That can be enough time to catch up on other debt
payments and improve your credit rating.
|
- Six and twelve month ARMs
can become expensive after the initial six or twelve month
introductory period.
Chances are, you'll want to improve your credit and obtain a
better loan.
|
| |
|
Fixed Rate Mortgages |
2 year fixed
3 year fixed |
- Two and three year fixed
rate mortgages provide the security of a fixed loan payment
and relatively low, fixed interest rate for the first
two or three years. For most people trying to improve their
credit, two to three years is plenty of time. After two or
three years, these loans
convert to ARM loans.
|
- Two and three year fixed
rate mortgages convert to ARM loans at the end of the fixed
rate period. Rates on ARMs can increase.
Chances are, you'll want to improve your credit and obtain a
different loan before the two or three years are up.
|
| |
|
Fixed Rate Mortgages |
15 year fixed
30 year fixed |
- Fixed monthly payment and
rate protect against interest and monthly payment increases
|
- Higher interest rate
compared to ARM introductory rates
- Higher rate compared to
two and three year, fixed rate loans
- Fifteen and thirty year
loans should generally be obtained if you plan not to move
or refinance in the foreseeable future. If you're trying to
improve your credit in anticipation of refinancing for a
lower-rate loan, consider avoiding these loans.
|
| |
|
Private Investor Loans |
| (Hard money) |
- Fast close
- Less "red tape"
- Easy qualification
guidelines
|
- Higher interest rate
- Higher loan fee
|
| |
| CREDIT ADVANTAGE
LOANS |
|
ONCE GOOD
CREDIT IS ESTABLISHED (OR REESTABLISHED),
THESE LOANS ARE AVAILABLE |
|
Loan Programs |
Advantages |
Disadvantages |
|
Adjustable Rate Mortgages |
10/1 ARM
7/1 ARM
3/1 ARM
1 year ARM
6 month ARM
2/28: 2 yr. fixed rate; 28 yr. 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 go up
|
| |
|
Balloon Mortgages
|
15 year (30 yr. fixed, due in 15)
7 year
5 year |
- Lower initial monthly
payment
- Lower payment over a
shorter 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 the balloon payment, refinance or exercise the
conversion option
|
| |
|
No point, No fee Programs |
| |
- No closing costs
- Less money required to
close
|
- Higher rates
- Higher payment
|
| |
|
Home Equity Line of Credit
|
| |
- You only borrow what you
need
- Pay interest only on what
you borrow
- Access to funds as needed
- Interest may be tax
deductible
- Up to 125% loan-to-value
|
- Rates can change. The
maximum interest rate is normally high
- Payments can change
- Harder to refinance your
first mortgage
|
| |
|
Home Equity Fixed Loans
|
| |
- Fixed payments
- Receive one lump sum at
closing
- Interest may be tax
deductible
|
- Higher interest rates
compared to 1st mortgages
- Harder to refinance your
first mortgage
|
|
Whatever your
situation, we have a loan just for you. If it's a loan to buy
a home, lower your monthly payments,
pay bills or improve your credit -- we've got it! Let us show
you.
Contact
Diana to make an appointment with her in-house FHA/ VA
specialist
or to get in touch with the
Bank of Commerce / Mortgage Reverse
Mortgage Specialist. |
Equal Opportunity Lender
