Free advice on Buying and Selling

6 Of The Most Popular Mortgage Options

1. 30-year conventional fixed rate loanBenefits include:

Monthly payments for principle and interest remain the same over the life of the loan (no surprises)

Lower monthly payments when amortized over a 30-year payment period (360 payments)
2. 15-year conventional fixed rate loan (also available in 10 & 20-year payment schedules)Benefits include:

Monthly payments of principle and interest remain the same over the life of the loan (no surprises)

Substantial savings of interest over the life of the loan (example: $100,000 loan at 8% amortized over a 30-year period the total interest paid is $164,166.27. The same loan amount, same interest rate amortized over a 15-year period is $72,017.41. The money saved in interest is $92,148.86.

Payments are approximately 25-30% higher when amortized over a shorter period of time (15-year amortization vs.a 30-year amortization)
3. No-Point / Zero Closing Cost LoansBenefits include:

Less cash needed at closing. The interest rate will usually be 1/2 to 3/4 of a percent higher when compared to loans that have points to pay at closing.
4. 7-year fixed rate balloon with a 30-year amortizationBenefits include:

Slightly lower rate and/or less fees than the conventional 30-year fixed rate loan

Payment of principle and interest remains the same over the 7-year period of time *Remember, at the end of the 7 years, you will need to pay off the remaining balance with either a lump sum of cash or re-finance the remaining loan amount.
5. Adjustable Rate Mortgages (ARM)There are many options with adjustable rate mortgages; the most popular tends to be the 1-yearadjustable rate mortgage with a 30-year amortization schedule.Benefits include:

Lower interest rate for the 1 st year

Easier to qualify for the loan amount

You can qualify for a larger loan amount

In a market when rates are going down, a year ARM offers the ability to adjust downward at the 1 year anniversary of your loan.
6. Federal Housing Administration (FHA)There are many loan products available.

Easier to qualify for loan programs than conventional financing.

Less down payment needed

The above text is for informational purposes only & is not a substitute for legal, tax or other professional assistance.