|
How Long
Will You be in the Home? |
Recommended
Loan Program. |
|
1-3 Years |
|
3-5 Years |
|
5-7 Years |
|
7-10 Years |
|
10 + Years |
|
|
3/1 ARM, 1 year ARM or 6 month ARM |
|
5/1 ARM |
|
7/1 ARM |
|
10/1 ARM, 30 year fixed or 15 year fixed |
|
30 year fixed or 15 year fixed |
|
|
ARM (Adjustable
Rate Mortgages) |
Fixed Rate
Mortgages |
| |
|
|
|
Programs |
Advantages |
Disadvantages |
|
10/1 ARM |
Lower initial monthly payment |
More risk |
|
7/1 ARM |
Lower payment over a shorter period of time |
Payments may change over time |
|
3/1 ARM |
Rates and payments may go down if rates
improve |
Potential for high payments if rates
go up |
|
1 year ARM |
Rates and payments may go down if rates
improve |
|
|
6 month ARM |
May qualify for higher loan amounts
|
|
|
1 month ARM |
May qualify for higher loan amounts
|
|
|
| |
|
|
|
Programs |
Advantages |
Disadvantages |
|
15 or 30 year fixed |
Monthly payments are fixed over the life of
the loan |
Higher interest rate |
| |
Interest rate does not change |
Higher mortgage payments |
| |
Protected if rates go up |
Rate does not drop
if interest rates improve |
| |
Can refinance if rates go down
|
|
|
