With a fixed-rate mortgage, the interest rate is set for the term of the loan.
An advantage of this type of loan is that it provides predictable housing costs
for the life of the loan. Learn more about Fixed Rate loans.
Loan Program
Features
Best For
Fixed Rate Mortgages:
Basic 30, 40, or 15-year Fixed Rate Loan
Monthly principal and interest payments that stay fixed for the entire life of the loan.
Protection from rising interest rates.
Borrowers who prefer a stable monthly payment for the life of the loan.
Homebuyers with limited or fixed incomes.
Homebuyers who plan to stay in their homes a long time.
People who are buying a home at a time when interest rates are comparatively low.
Fixed Rate Mortgages:
Jumbo 30, 40 or, 15-year Fixed Rate Loans
Loans for amounts greater than conventional limits.
Monthly principal and interest payments that stay fixed for the entire life of the loan.
Protection from rising interest rates.
Borrowers who prefer a stable monthly payment for the life of the loan.
Homebuyers with limited or fixed incomes.
Homebuyers who plan to stay in their homes a long time.
People who are buying a home at a time when interest rates are comparatively low.
ARMs give you the security of a fixed rate mortgage for up to 10 years with lower payments. ARMs offer fixed rate periods of 1, 3, 5, 7, and 10 years before converting to an adjustable rate for the remainder of the 30-year term. The increased risk associated with these loans usually means you are rewarded with a lower interest rate during the fixed portion of the term. Learn more about ARMs.
Loan Program
Features
Best For
Adjustable Rate Mortgages:
1/1, 3/1, 5/1, 7/1 and 10/1 ARM
Interest rate that is fixed for an initial period, then becomes an adjustable for the remainder of the loan.
Lower initial rate and payment than with a fixed-rate mortgage.
A variety of fixed-period options.
Buyers who need a larger loan amount than they can qualify for with a fixed-rate mortgage.
People looking to increase their short-term cash flow.
Homebuyers who plan to move or refinance within a few years.
Interest-Only loans allow you to make minimum interest payments for a set period of time, then they payment will go up with full principal and interest payments for the rest of the loan term. This is different than traditional mortgages, where the payment consists of principal and interest for the life of the loan. Use the savings from the lower initial payments for other immediate needs, keeping in mind that payments will increase in the future. Learn more about Interest Only Loans.
Loan Program
Features
Best For
Interest Only 30-Year Fixed Mortgages
Loan initially requires a lower payment of interest only for the first 10 years. The following 20 years require a fully amortizing payment (principal and interest).
Interest rate remains stable for the entire 30 year loan term.
Buyers whose income fluctuates (commissioned, self-employed, or on a bonus schedule).
People who have other needs for their cash each month and want the most flexible cash-flow options.
Homebuyers who expect to own their home for a short period of time.
Interest Only 5/1 ARM Mortgage
Loan initially requires a lower payment of interest only for the first 10 years. The following 20 years require a fully amortizing payment (principal and interest).
The initial interest rate change will occur on the 5th year and will then adjust every year thereafter for the remainder of the loan, based on the movement of the index.
Buyers whose income fluctuates (commissioned, self-employed, or on a bonus schedule).
People who have other needs for their cash each month and want the most flexible cash-flow options.
Homebuyers who expect to own their home for a short period of time.
Don't miss out on a great loan or your dream home just because you don't have adequate cash for a down payment, have credit problems, or special financial circumstances which might disqualify you from many loans and lenders. We can help!. Learn more about FHA Loan Programs.
Loan Program
Features
Best For
FHA
Loans that are insured by the Federal Housing Administration (FHA) used to purchase or refinance 1-4 unit properties.
Low down payment requirements.
Flexible income, debt, and credit requirements to help qualified borrowers.
Down payment and closing costs may be funded by a gift, grant or secured loan.
The Department of Veterans Affairs (VA) guarantees loans provided
to help qualified veterans, reservists, and active-duty service
members to finance their homes. Learn more about VA Programs.
Loan Program
Features
Best For
VA
No down payment option.
Flexible income, debt, and credit requirements to help borrowers qualify.
Down payment and closing costs may be funded by a gift, grant or secured loan.
Qualified veterans, reservists, active-duty service members.
A home equity line of credit is a form of revolving credit in which your home serves as collateral. Think of it as a credit card that is secured by the equity in your home. Many homeowners use these credit lines for major items such as debt consolidation, travel expenses and home improvements. Learn more about Home Equity Lines of Credit.
Loan Program
Features
Best For
Home Equity Line
of Credit (HELOC)
Flexible access to funds. You only draw what you need.
Potential tax advantages.
You can access your available credit anytime during the Draw Period
You have low interest-only payment options on the funds you use.
You want access to funds now and in the future.
Ongoing expenses such as Home improvements, Educational and medical expenses, and Life events.
A home equity loan enables you to borrow money in a lump sum against the equity (the value of your home minus what you owe) you have built up in your home. This loan is subordinate to the existing first mortgage. Home equity loans are often used to pay off credit card debt, buy a car, or to make major renovations to a home. Learn more about Home Equity Loans.
Loan Program
Features
Best For
Home Equity Loan
(Second)
Predictable fixed payments.
Possible tax advantages.
You have one large expense now.
You want a fixed interest rate and fixed monthly payment.
Please note that various lender conditions apply to all loan products, depending on the size of the loan, down payment amount, loan-to-value ratio, applicant credit history, and other conditions.
