Finding the right loan for you may seem like an impossible task, but have no fear, there are many resources out there just waiting to help!
Click here to use our loan calculator to compare interest rates and amounts borrowed.
The most important question you need to ask yourself is:
How long do I plan on owning my home?
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Loan Programs
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Pros
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Cons
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Fixed Rate Mortgages
>>30 year fixed rate
>>15 year fixed rate
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>>Monthly payments are fixed over the life of the loan
>>Interest rate doesn't change
>>Can refinance loan if rates go down
>>Rate is protected if rates go up
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>>Higher mortgage payments
>>Higher interest rates
>>Rate does not go down 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
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>>Initially you will have lower monthly payment
>>Lower payments over a shorter period of time
>>Could qualify for larger loan amounts
>>Rates and payments may go down if rates improve
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>>Riskier
>>Risk of higher payments if rates go up
>>Payments may change over time
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Balloon Mortgages
>>7 year
>>5 year
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>> Lower monthly payment, initially
>>Balloon mortgages offer the option to convert to a new loan after the initial term, most times
>>Lower payment over a shorter period of time
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>>Potential of rates being higher at the end of the initial fixed period
>>Risk of foreclosure if balloon payment cannot be made, if you cannot refinance, or if you cannot use the conversion option
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First Time Buyer Programs
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>>Low down payment
>>It is possible to get lower rates
>>Easy to qualify
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>>Some programs which have government subsidies could have a recapture tax if you sell the house early
>>Could be subject to property value & income limitations
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Stated Income Programs
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>>Doesn't need to verify your income
>>Quicker approvals
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>>Higher rates
>>Larger down payments
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No point, No fee Programs
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>>No closing costs
>>Less money needed to close
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>>Higher rates
>>Larger payments
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Imperfect Credit Programs
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>>Potential for re-establishing credit if you make your loan payments on time.
>>You may be able to reduce your monthly debt payment, when used for debt consolidation
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>>Higher rates
>>Harder to get long term fixed loans
>>Loans may have penalties on prepayment
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Home Equity Line of Credit
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>>Pay interest only on what you borrow
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You only borrow what you need
>>Interest may be tax deductible
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>> Rates can change
>>Payment can change
>>Interest rates are typically high
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Home Equity Fixed Loan
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>>Fixed payments
>>Interest can possibly be tax deductible
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>>Higher interest rates than on 1st mortgages
>>Can make it harder to refinance your first mortgage
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