Loan Options

Loan-Options

Loan Options

• Fixed Rate Loans—An excellent way to lock into a low interest rate for the life of your loan.
• Adjustable Rate Mortgages (ARMs)—The flexible loan, with lower initial rates and payments.
• Initial Fixed Rate Loan—Start with a rate generally lower than standard fixed rate loans.

30 Year Fixed Rate

Appropriate for borrowers who: Loan Parameters
  • Plan to live in the property over 10 years
  • Like total payment stability
  • Interest rate & monthly payment remain the same for 30 years

15 Year Fixed Rate

Appropriate for borrowers who: Loan Parameters
  • Plan on staying in property over 10-15 years
  • Want to pay off property faster than 30 years
  • Lower interest rate than 30 year loan
  • Interest rate & monthly payment remain the same for 15 years

10/1 Year semi-fixed

Appropriate for borrowers who: Loan Parameters
  • Plan to live in property approximately 10 to 12 years
  • Like initial payment stability; can accept
    interest rate change later
  • Interest rate & monthly payment fixed for the first 10 years
  • Starting the 11th year, interest rate adjusted every year,
    therefore, payment is subject to change every year for
    remainder of loan

7/23 (2-Step) or '30/7 + 23'

Appropriate for borrowers who: Loan Parameters
  • Plan to live in property approximately 7 to 8 years
  • Can handle one payment adjustment
  • Interest rate & monthly payment fixed for the first
    7 years
  • Conversion option: On the 8th year, interest rate
    adjusted to reflect prevailing fixed interest rates.
    Resulting payment will remain the same for remainder of loan

7/1 Year semi-fixed rate

Appropriate for borrowers who: Loan Parameters
  • Plan to live in property approximately 7 to
    8 years
  • Like initial payment stability and can handle
    change later
  • Interest rate & monthly payment fixed for the
    first 7 years
  • Starting the 8th year, interest rate adjusted every
    year, so payment is subject to change every year
    for remainder of the loan

5/25 (2-Step) or '30/5 + 25'

Appropriate for borrowers who: Loan Parameters
  • Plan to live in property approximately 5 to 6 years
  • Can handle one payment adjustment
  • Interest rate & monthly payment remain fixed
    for the first 5 years
  • Conversion option: On the 6th year, interest rate
    adjusted to reflect prevailing fixed interest rates.
    Resulting payment will remain the same for remainder of loan

5/5 & 5/1 Year semi-fixed rate

Appropriate for borrowers who: Loan Parameters
  • Plan to live in property approximately 5 to 6 years
  • Like initial payment stability, can accept later changes
  • Interest rate & monthly payment remain fixed for the first 5 years
  • Starting the 6th year, interest rate adjusted
    every 5 years(for 5/5 ARM) and every year
    (for 5/1 ARM)

3/3 & 3/1 Year semi-fixed

Appropriate for borrowers who: Loan Parameters
  • Plan to live in property 3 years or less
  • Like initial payment stability, can accept
    later changes
  • Interest rate & monthly payment remain
    fixed for the first 3 years
  • Starting 4th year, interest rate adjusted
    every 3 years (for 3/3 ARM) and every year
    (for 3/1 ARM)

Adjustable rate loans

Appropriate for borrowers who: Loan Parameters
  • Want to take advantage of lowest rate possible
  • Are willing to accept yearly payment changes
    OR
  • Cannot qualify at higher rate programs
  • Interest rate adjusted every year, so monthly
    payment is subject to change every year for
    entire 30 year loan term
  • Potential higher payments (at maximum
    interest rate)