Loan Programs

We’ve highlighted the programs more commonly offered today. Characteristics of each loan program are unique, so consult us for more information and to become familiar with the details of the programs available to you.

To help determine the best loan program for you, consider the following:

• How important is payment certainty? If knowing that your payment will be the same every month is important, consider a fixed-rate mortgage.
• How important is rapid equity buildup? If rapid equity buildup is a factor, consider a shorter amortization period, such as a 15-year, fixed-rate mortgage.
• Do you anticipate increasing or stable income? If income growth is anticipated, you could take advantage of a lower start rate on an ARM or a temporary buydown.
• Other factors to consider include:
  • ability to qualify at market rates for loan amount selected
  • anticipated term of occupancy
  • possibility of significant rate changes
  • existence of up-front costs

Loan Programs	Characteristics
15- and 30-Year   Fixed-Rate Mortgage	Interest rate does not change. Principal and interest (P & I) does not change. Fixed-rate mortgages fully amortize over a defined period of time and are paid in-full at the end of the loan term. Different loan terms are available (15- and 30-year terms are most popular). The shorter the term, the faster equity is built and the loan is paid off.
Fixed-Rate Balloons	P & I payment and interest rate do not change. Regular monthly P & I payments are based on 30-year amortization, while the unpaid balance (balloon) is due at the end of a shorter, predetermined term, typically 5, 7 or 10 years. Interest rate is typically less than fixed-rate loans. Most borrowers anticipate refinancing or selling prior to the end of the balloon term.