Loan Programs - Advantage - Disadvantages

Mortgage and Lending with All Pro Real Estate & Mortgage Inc.

October 07, 2006 12:16 PM

Fixed Rate Mortgages
30 year fixed 15 year fixed	Monthly payments are fixed over the life of the loan Interest rate does not change Protected if rates go up Can refinance if rates go down	Higher interest rate Higher mortgage payments Rate does not drop if interest rates improve
Adjustable Rate Mortgages
10/1 ARM 7/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM	Lower initial monthly payment Lower payment over a shorter period of time Rates and payments may go down if rates improve May qualify for higher loan amounts	More risk Payments may change over time Potential for high payments if rates go up
Balloon Mortgages
7 year 5 year	Lower initial monthly payment Lower payment over a shorter period of time Many balloon mortgages offer the option to convert to a new loan after the initial term	Risk of rates being higher at the end of the initial fixed period Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option
VA Loans
30 year fixed 15 year fixed	Low down payment needed for purchases Can have less than perfect credit Allows for interest rate reduction loan if you refinance	VA funding fee is added to your loan balance Higher interest rates
FHA Loans
30 year fixed 15 year fixed	3% down payment More lenient credit criteria	Higher mortgage insurance premium added to loan balance

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Fred Griffin Florida Real Estate

Fred Griffin Real Estate - Tallahassee, FL

Licensed Florida Real Estate Broker

We invite you back to ActiveRain in 2016!

Jun 07, 2016 12:20 PM