Residential Programs

Which loan is right for me?

How do you decide which loan is most suitable or most beneficial for you? Below is a general rule-of-thumb to use when deciding which loan program is best for you, and also descriptions of common loans that are available.

Years you plan to stay in the house	Recommended Program
1-3	3/1 ARM, 1 year ARM, or 6 month ARM
3-5	5/1 ARM
5-7	7/1 ARM
7-10	10/1 ARM, 30 year fixed or 15 year fixed
10+	30 year fixed or 15 year fixed

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Loan Programs	Advantages	Disadvantages
Fixed Rate Mortgages
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 than the Adjustable Rate Mortgage 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	Payments may change over time Potential for high payments if rates go up
Balloon Mortgages
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 balloon payment or if you cannot refinance or if you cannot exercise the conversion option
First Time Buyer Programs
	Lower down payment Easier to qualify Sometimes you may get lower rates May have to make less than the median income	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
Stated Income Programs
	Not Available
No Point, No Fee Programs
	No closing costs Less money required to close	Higher rates Higher payments
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	Higher rates Terms may not be as favorable Harder to get long term fixed loans
Home Equity Line of Credit
	You can 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 Maybe harder to refinance your first mortgage
Home Equity Fixed Loan
	Fixed payments Interest may be tax deductible	Higher interest rates than on 1st mortgages Maybe harder to refinance your 1st mortgage

Besides our standard loan programs, we also have a large number of unique programs to serve your needs:

• Purchase a house with $0 down (USDA & VA loans)
• Piggyback loans 80/10. No PMI payments even with >80% financing
• 97% No Mortgage Insurance Program (LPMI)
• Debt Consolidation Programs
• Home Improvement Loans / Rehabilitation Loans
• Construction to Permanent Financing
• Qualify even if you may have been turned down before!