There are many loan programs to fit almost any need. Please call and ask which loan program best fits your situation.
Recommended Programs
Use the information below to choose the best program for your need.
Years you plan to stay in the house:
Recommended Program(s):
15-Year and 30-Year Fixed Rate
Payment and rate stay the same from start to finish
5 and 7 Year Balloons
Lower start rate. Some of the balloon programs may be converted to an adjustable rate or a fixed
rate after the 5 or 7 years, with a very low fee and an attractive rate
Adjustable Rate Mortgage (ARM)
Lowest start rate adjusts either every 6 months, every 12 months, or every 3/5/7 years, depending on the program, grade is based on the economy 6% ceiling for prime and 7% ceiling for sub-prime.
5/1 and 7/1 Fixed Rate
Rate is fixed for the first 5 or 7 years, then shifts to an adjustable rate mortgage (ARM).
2/28 and 3/27 ARM
An ARM program that is fixed for the first 2 or 3 years, then shifts into a 6 month adjustable rate mortgage. It is a sub-prime program giving you a rate lower than the sub-prime 30-year fixed, and if you have had credit problems this allows time to rectify the credit issues. You will then want to refinance this loan.
Which Program is best for me?
Here are a few things to keep in mind when selecting a loan program.
15-Year and 30-Year Fixed Rate
Advantages:
Disadvantages:
Maximum interest deduction for taxes, sometimes easier to qualify, stable predictable payments,
higher loan to value programs usually available, lower down payment, possible secondary financing if needed.
Pay more interest over the life of the loan, higher starting interest rate, Lower debt ratio (Larger Income to qualify) Higher monthly payment.
5 and 7 Year Balloons
Advantages:
Disadvantages:
Lowest starting interest rates help qualify for higher loan amounts. If you plan to sell within 2-3 years. If you expect your income to increase
Periodic payment and rate increases, builds equity, slow payment increases may affect budget.
Adjustable Rate Mortgage (ARM)
Advantages:
Disadvantages:
Lower starting rate than 30 year fixed
great for refinancing from a higher rate use when you plan a move in 3/5/7 years Some are convertible to 30-yr fixed or a treasury ARM, low fees, good rates.
Rate May Increase and this can change long term financial planning if you plan to live there over the fixed rate term (3/5/7 Years).
5/1 and 7/1 Fixed Rate
Advantages:
Disadvantages:
Lower starting rate than 30 year fixed
Great for refinancing from a higher rate, use when you plan a move in 5-7 years. Some are convertible to 30-yr fixed or a treasury ARM, low fees, good rates.
Subject to change after the 5/7 years and the new rate is calculated based on the current market rate at that time.
2/28 and 3/27 ARM
Advantages:
Disadvantages:
It allows a window of time for credit rebuilding and seasoning
Rate is subject to adjust in a specified time frame, this may affect budget
Additional Comments
1 Stop Mortgage has a variety of loan programs. Additional programs are available!
100% Financing, Home Equity Loans (minimum of $20,000), VA Loans and many more! Call 1 Stop Mortgage, Inc to find the best loan program for you.
