WHAT IS THE RIGHT LOAN FOR ME?

Which loan is right for me?
Years you plan to stay in the house	Recommended program
1-3 years 3-5 years 5-7 years 7-10 years 10+	3/1 ARM, 1 year ARM or 6 month ARM 5/1 ARM 7/1 ARM 10/1 ARM, 40/30 or 20 year fixed 40/30/ or 20 year fixed

Loan Programs	Advantages	Disadvantages
Fixed Rate Mortgages
40 year fixed 30 year fixed 20 / 15 year fixed	Monthly payments are fixed over the life of the loan. Interest rate does not change. Protected if rate goes up. Can refinance if rates fo down.	Higher interest rate. 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 amount	More risk Payments may change over time Potential for high payments if rates go up
First Time Buyer Programs
40 year / 30 year financing	100 % financing one loan Seller can contribute up to 5% for closing cost Easy to qualify Little to no savings reserves require	May be subject to income and property value limitations Mortgage insurance with program Can not have own home in the past 3 years
Stated Income Programs
	Don't need to verify income Faster approval	Higher rate Higher down payment
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	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 Interest may be tax deductible	Higher interest rates than on 1st  mortgage Harder to refinance your first mortgage
Pay Option ARM
	Low payments for a fixed period of time Able to choose type of payment every month Minimum payment Interest only payment 30 year amortize payment 15 year amortize payment	Payment will adjust every year Your interest rate is variable Decreasing equity on home Short term loan will have to refinance
No Point, No fee Programs
	No closing costs Less money required to close	Higher rate Higher payments