40 year fixed
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
|
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
go up
|
| First
Time Buyer Programs |
| |
Lower down payment
Easier to qualify
Sometimes you may get lower rate
|
May be subject to income and property
value limitations |
| |
Don’t need
to verify income
Faster approval
|
Higher rates
Higher down payment
|
| No
point, No fee Programs |
| |
No closing costs
Less money required to close
|
Higher rates
Higher payments
|
| 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
|
Rates can change.
The maximum interest rate is normally
high.
Payments can change
Harder to refinance your first mortgage
|
