|
Loan Program
|
Advantages
|
Disadvantages
|
|
|
Adjustable Rate Mortgages |
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 higher payments if rates go up
|
|
|
No Point, No Fee Programs |
|
|
* No closing costs
* Less money required to close
|
* Higher rates
* Higher payments
|
|
|
Stated Income Programs |
|
|
* Don't need to verify
income
* Faster approval
|
* Higher rates
|
|
|
No Income / No Asset Programs |
|
|
* Only verify employment
* Don't need to verify income
* Faster approval
|
* Higher rates
|
| No Documentation
|
| |
* Faster
approval
* Don't need to verify income, assets or
employment
|
* Higher rates
*
higher payments |
|
| Imperfect Credit
Programs |
| |
* Potential
for reestablishing 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
*
Higher payments |
|
| Home Equity Line
of Credit |
| |
* You only
borrow what you need
* Pay interest only on what you borrow
* Low cost
or $0 down
* Flexible access to funds
* Interest may be tax deductible
|
* Rates can change. The
maximum interest is normally high
* Payments can change
|
|
| Interest
Only |
| |
* Lowest
rates
* Lowest payments
* Buy more home |
* Never paying principle |
