Loan Programs

Thirty-Year Fixed Rate Mortgage

The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Fifteen-Year Fixed Rate Mortgage

This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate — and you’ll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that great.

ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)

These increasingly popular ARMS — also called 3/1, 5/1 or 7/1 — can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a “5/1 loan” has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

Adjustable Rate Mortgages (ARM)

When it comes to ARMs there’s a basic rule to remember…the longer you ask the lender to charge you a specific rate, the more expensive the loan.

Negative Amortization (Neg. Am) Loan

This is a deferred-interest loan which is very powerful — and the most misunderstood mortgage program because of its many options. Basically, the lender allows the borrower to make monthly payments that are less than the accruing interest. Therefore, if the borrower chooses to make the minimum monthly payment, the loan balance will increase by the amount of interest not paid on the loan. The power of this loan lies in the borrower’s ability to choose between making the full loan payment, or the minimum payment, or any amount in between. If a borrower’s income varies throughout the year (due to commissions, bonuses, etc.), the borrower can make a lower payment during the “lean times”, and then make higher payments when funds are readily available.

1/3/5/7 Year ARMs

We offer lower interest rate ARM, or Adjustable Rate Mortgage, programs that are fixed for a specific number of years at a lower interest rate than a 30 or 15 year fixed program. These programs can save you money on your mortgage payments, especially if you are planning to move in a certain number of years or are buying your first home.

Interest Only

Only make an interest payment on your mortgage. This keeps your payments as low as possible, leaving more disposable income to pay other debts or to apply toward your principle balance. This is a great program if you are buying an investment property that you intend on selling in a few years, or if you are planning to move within the first few years of buying your home.

Poor Credit – We have loans to help reestablish your credit

Loan Programs Advantages Disadvantages

Adjustable Rate Mortgage (ARM)
6 month ARM
12 month ARM

Six and twelve month ARMs can significantly lower a mortgage payment for six or twelve months.

That can be enough time to catch up on other debt payments and improve your credit rating.

Six and twelve month ARMs can become expensive after the initial six or twelve month introductory period.

Chances are, you’ll want to improve your credit and obtain a better loan.

Fixed Rate Mortgages
2 year fixed
3 year fixed

Two and three year fixed rate mortgages provide the security of a fixed loan payment and relatively low, fixed interest rate for the first two or three years.

For most people trying to improve their credit, two to three years is plenty of time. After two or three years, these loans convert to ARM loans.

Two and three year fixed rate mortgages convert to ARM loans at the end of the fixed rate period. Rates on ARMs can increase.

Chances are, you’ll want to improve your credit and obtain a different loan before the two or three years are up.

Fixed Rate Mortgages
15 year fixed
30 year fixed

Fixed monthly payment and rate protect against interest and monthly payment increases Higher interest rate compared to ARM introductory rates

Higher rate compared to two and three year, fixed rate loans

Fifteen and thirty year loans should generally be obtained if you plan not to move or refinance in the foreseeable future.

If you’re trying to improve your credit in anticipation of refinancing for a lower-rate loan, consider avoiding these loans.

Private Investor Loans
(Hard money)
Fast close

Less “red tape”

Easy qualification guidelines

Higher interest rate

Higher loan fee

Loan Programs Advantages Disadvantages

Adjustable Rate Mortgages
10/1 ARM
7/1 ARM
3/1 ARM
1 year ARM
6 month ARM
2/28: 2 yr. fixed rate; 28 yr. 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

More risk

Payments may change over time

Potential for high payments if rates go up

Balloon Mortgages
15 year (30 yr. fixed, due in 15)
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 the balloon payment, refinance or exercise the conversion option

No or Stated Income/Asset Programs

No tax returns or W-2s

No proof of assets or down payment

No verification of income

Fast approval

Higher rates

Higher down payment

No point, No fee Programs No closing costs

Less money required to close

Higher rates

Higher payments

Home Equity Line of Credit

You only borrow what you need

Pay interest only on what you borrow

Access to funds as needed

Interest may be tax deductible

Up to 125% loan-to-value

Rates can change. The maximum interest rate is normally high

Payments can change

Harder to refinance your first mortgage

Home Equity Fixed Loan

Fixed payments

Receive one lump sum at closing

Interest may be tax deductible

Higher interest rates compared to 1st mortgages

Harder to refinance your first mortgage