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Advantages |
Disadvantages |
- 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.
|
| |
| Advantages |
Disadvantages |
- 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.
|
| |
| Advantages |
Disadvantages |
- 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.
|
| |
| Advantages |
Disadvantages |
- Lower down payment.
- Easier to qualify.
- Sometimes you may get lower rate.
|
- 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.
|
| |
| Advantages |
Disadvantages |
- Don't need to verify income.
- Faster approval.
|
- Higher rates.
- Higher down payment.
|
| |
| Advantages |
Disadvantages |
- No closing costs.
- Less money required to close.
|
- Higher rates.
- Higher payments.
|
| |
| Advantages |
Disadvantages |
- 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.
- Loans may have prepayment penalties.
|
| |
| Advantages |
Disadvantages |
- 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.
|
| |
| Advantages |
Disadvantages |
- Fixed payments.
- Interest may be tax deductible.
|
- Higher interest rates than on 1st mortgages.
- Harder to refinance your first mortgage.
|
| |
Besides our standard loan programs, we also have a
variety of loans for specific needs:
- Purchase a house with $0 down.
- Loans with No PMI.
- Debt consolidation programs.
- Home Improvement loans even for borrowers who have
been turned down before.
- Down Payment Assistance Available.
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