Fixed Rate Mortagages
Loan Programs Advantages Disadvatages
  • 20 Year Fixed
  • 10 Year Fixed
  • Monthly payments are fixed over the life of the loan
  • Interest rate does not change Protected if rates go up
  • Can refinance is rates go down
  • Higher Interest Rate.
  • Higher mortgage payments
  • Rate does not drop if interest rates improve
Adjustable Rate Mortgages
Loan Programs Advantages Disadvatages
  • 10/1ARM
  • 7/1 ARM
  • 3/1 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
Streamline Refinance
Loan Programs Advantages Disadvatages
  • FHA 30 Yr Fixed
  • Use the home's equity to pay closing costs.
  • Cost of refinance may be tax deductible
  • May be subject to property value and credit limitations
Imperfect Credit Programs
Loan Programs Advantages Disadvatages
  • 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