Loan Programs: Which one is right for you?
Fixed Rate Mortgage (FRM):   15 year - Shorter payment period - Low monthly payments not a priority - Planning on staying in house more than 10 years   30 year - Low monthly payments that will never change - Generally, easier to qualify - Maximum tax advantage   40 year - Low monthly payments that will never change - 480 months amortization - Generally, easier to qualify - Maximum tax advantage   50 year - Low monthly payments that will never change - 600 months amortization - Generally, easier to qualify - Maximum tax advantage     Adjustable Rate Mortgage (ARM):   1, 2, 3, 5, 7 or 10 year periods - Rate is fixed for the period of time selected and will adjust up or down according to market conditions and terms of the loan. i.e., if a 2-year ARM is selected, the rate will remain fixed for 2 years, and will adjust (up, down or stay the same) with the market for the remainder of the loan.   Interest-Only - Popular alternative to FRMs - Greater purchasing power - Increased cash flow - Minimum tax advantage - Available in many interest only periods (1 and 6 month, 1, 3, 5, 7 and 10 year) · i.e., if a 5 year interest only ARM is selected, the borrower has a fixed interest-only rate for five years and is required to pay only the interest each month during those five years; after the initial interest-only period of five years, the loan re-amortizes into a traditional principle and interest loan (the remaining principle balance and interest will need to be paid in monthly payments for the remaining life of the loan – in this case, 25 years).     Other Options: - 1st Time Homebuyers - Investors - VA Loans - Divorces - Self-Employed - Debt Consolidation - 100% Financing