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· 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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· 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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· 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.
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· Risk of rates being
higher at the end of the initial fixed period
· Risk of foreclosure if you cannot make balloon payment or if you cannot
refinance or if you cannot exercise the conversion option
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· Lower down payment
· Easier to qualify
· Sometimes you may get lower rate
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· May be subject
to income and property value limitations
· Some programs which have government subsidies may have a recapture tax
if you sell the house too early.
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Stated Income Programs
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· Don't need to verify
income
· Faster approval
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· Higher rates
· Higher down payment
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| No point,
No fee Programs |
· No closing costs
· Less money required to close
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· Higher rates
· Higher payments
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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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Besides our standard
loan programs, we also have a large number
of unique programs to serve your needs:
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· Purchase
a house with 0 down
· Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with 5% or
10% down.
· Debt consolidation programs
· Home Improvement loans
· Qualify even if you may have been turned down before!
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