|
|
| MORTGAGE PRODUCTS |
|
This loan has a Thirty(30) year amortization period with a fixed rate for the life of the loan.
Pros:
• A mortgage payment that will remain stable for the life of the loan.
• Best suited for borrowers looking to own the property for more than Eight (8) years.
Cons:
• Long term fixed rates are not as competitive as adjustable rates.
• If you plan on owning the property for a period of One to Seven (1-7) years, an adjustable mortgage saves you more money over the life of the loan.
Similar to the 30 Year Fixed Rate program; this loan instead carries an amortization of Fifteen (15) years.
Pros:
• Aggressive program that allows you to pay down your principle balance at a faster rate than a standard Thirty (30) year program.
Cons:
• With a smaller amortization schedule payments are larger than a 30 year note.
• Decreases the amount of cash flow one may have on a monthly basis with the larger payment.
Your interest rate is fixed for the first Five (5) years with amortization schedule of Thirty (30) years.
Pros:
• This program allows you to take advantage of a lower rate compared to conventional longer term fixed rate programs.
• The lower rate translates into a lower monthly payment, increasing personal cash flow per month.
• Provides security of an interest rate fixed for a set number of years.
Cons:
• Becomes an adjustable rate mortgage after initial fixed term, which can lead to a higher payment after Five (5) years if major indices increase.
Similar to the standard 5 Year ARM program, except the payment due is the interest that accrues on the loan every month, excluding the principle balance.
Pros:
• An excellent way to increase monthly cash flow, due to very low monthly payments.
• Most interest only programs allow a paydown of principle without penalty.
• A great program for individuals whose income fluctuates on a monthly basis (such as self employed borrowers).
Cons:
• Paying only interest payments does not reduce the amount of the principle balance on the loan.
This product has a Thirty (30) year amortization with a fixed rate for the first Seven (7) years, after which the borrower has the conversion option to a fixed rate at the end of Seven (7) years.
Pros:
• Allows the borrower the option to take advantage of a lower interest rate for the first Seven (7) years of the loan.
Cons:
• At the time of maturity, rates may be significantly higher than the start rate.
• In deciding not to convert to a fixed rate, the loan balloons and your remaining principle balance is due in full.
|
|
|
