| Loan Programs |
Advantages |
Disadvantages |
| |
|
|
| Fixed Rate Mortgages |
|
30 Year Fixed
15 Year Fixed
|
• 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 |
• 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 amounts |
• More risk
• Payments may change over time
• Potential for high payments if rates go up |
| |
|
|
| Balloon Mortgages
|
|
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 balloon payment or if
you cannot refinance or if you cannot exercise the conversion option.
|
| |
|
|
| Stated Income
Programs |
|
|
• Don’t need to verify income.
• Faster approval. |
• Higher rates.
• Higher down payment. |
| |
|
|
| No Point, No
Fee Programs |
|
|
• No closing costs.
• Less money required to close. |
• Higher rates.
• Higher payments. |
| |
|
|
| Imperfect Credit
Programs |
|
|
• Potential for re establishing 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. |
| |
|
|
| 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
mortgages.
• Harder to refinance your first mortgage. |
|
*Additional loan programs may
be available. Ask your Fallbrook Financial Services expert to tell
you more.
|
Besides our standard loan programs, we also
have a large number of unique programs to serve your needs:
