home
about us
loan programs
training
contact us
 
   
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
 
 
 
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
 
© Copyright 2006 AllGood Mortgage Corporation