|Home Loan Options
|Best Choice if
|Rate does not change. Principle and interest payments remain the same for life of the loan.
||No risk of changing market conditions increasing your monthly payment.
||Plan on owning home long-term.
||Higher total interest paid over the life of the loan compared to a shorter term mortgage loan.
| Shorter Term|
|Loan balance will decrease more rapidly than a 30 year mortgage resulting in reduced total interest.
||Your budget allows for a larger monthly payment.
||Higher monthly payments than a 30-year mortgage.
|Adjustable - Rate
Various terms and options available
|Fixed rate for a set period of time after which will adjust annually.
||Typically a lower initial rate and payment than a traditional 30 year mortgage
||Low initial payment is desired. Plan on selling home after fixed rate period ends.
||Interest rate may rise above current fixed rate over time.
|First-time homebuyer program requiring a low down payment with flexible income and credit guidelines.
||As little as 3% down. No PMI required. Relaxed underwriting guidelines.
||Recently married, just graduated college or tired of renting.
||Only available to first-time homebuyers.
|Low down payment mortgage available to first-time and repeat homebuyers.
||Mortgage insurance is cancellable when home reaches 20% equityif certain terms and conditions/restrictions are met
||Limited cash for down payment.
||Program eligibility is limited by income dependent on the location of property.
| Larger than usual loan amounts for financing higher priced homes.
||Ability to finance a higher priced home without an exorbitant down payment or multiple mortgages.
||Buying a luxury or higher priced home.
||May require a larger down payment than a conforming loan.