 |
|
|
#
of Years You Plan
To Live In Your Home
|
F&M
Mortgage Group Recommends |
| 1-3 |
3/1 ARM, 1 year ARM or
6 month ARM |
| 3-5 |
5/1 ARM |
| 5-7 |
7/1 ARM |
| 7-10 |
7-10 10/1 ARM, 30 year
fixed or 15 year fixed |
| 10+ |
40 year fixed, 30 year
fixed or 15 year fixed |
| |
| Loan
Programs |
Advantages |
Disadvantages |
| Fixed-Rate
Loan Program |
| More
Information |
 |
Interest rates
steady for the life of the loan |
|
Stable monthly payment |
|
Protected if rates go up |
|
Can refinance if rates go down |
|
|
Rate does not drop
if interest rate drops |
|
Larger monthly payments |
|
Higher interest rates than
other loan products |
|
| |
| Adjustable
Rate Loan Programs |
| More
Information |
|
Lower initial monthly
payments |
|
Good for homeowners who plan
on owning a property for just a few years |
|
|
Payments may change
over time |
|
Potential for more risk |
|
Higher payments if rates rise
|
|
| |
|
|
| Interest-Only
Loan Program |
| More
Information |
|
Afford more home
(up to 25% more) by paying just the interest
for a set term. |
|
Interest-only terms for 3,
5, 7, 10, or 15 years |
|
No penalties or fees to pay
toward the principal during the interest-only
period |
|
Tax deductible benefits of
mortgage interest with the flexibility to
use monies for things such as investment,
retirement contributions and home improvements
|
|
|
Equity is more
difficult to acquire |
|
Borrowers must plan |
|
| |
|
|
| Home
Equity Loan Programs |
| More
Information |
|
Use funds as needed,
pay back over time |
|
Flexible lines of credit |
|
Tax-deductible interest |
|
Attractive interest rates |
|
|
Variable rates
can change |
|
Payments can change |
|
| |
|
|
| Challenged
Credit Loan Program |
| More
Information |
|
Repair or establish
credit |
|
F&M Mortgage Group works with
you to find a loan program that can be customized
to your needs |
|
Minimal initial cost lets your
dream of buying a home become a reality |
|
|
Higher rates |
|
Terms may not be as favorable
|
|
Loans may have prepayment penalties
|
|
| |
|
|
| Zero
–Down Loan Programs |
| More
Information |
|
Buyers with sufficient
income & good credit, but little savings,
can purchase a home |
|
Building of equity occurs quickly |
|
|
Interest rates
are slightly higher than those for conventional
loans |
|
Selling your home before accumulating
equity would require you to pay all costs
associated with the sale of your home (such
as closing costs, attorney fees and realtor
commissions) |
|
| |
|
|
| No
Income Verification Loan Program |
| More
Information |
|
Great for self-employed,
independent contractors, commissioned employees
or pensioners/retirees |
|
Less paperwork than other loan
programs. No proof of income required. |
|
|
Higher rates than
traditional mortgage programs |
|
Larger down payment required
|
|
Must have FICO credit of 620
or higher |
|
| |
|
|
| First
Time Buyer Programs |
| More
Information |
|
Lower down payment
|
|
Easier to qualify |
|
Sometimes you may get lower
rate |
|
|
May be subject
to income and property value limitations |
|
Some programs which have government
subsidies may have a recapture tax if you
sell the house too early. |
|
| |
|
|
| Stated
Income Programs |
| More
Information |
|
Don't need to verify
income |
|
Faster approval |
|
|
Higher rates |
|
Higher down payment |
|
| |
|
|
| Community
Loan Programs |
| More
Information |
|
Little as $500
of your own funds |
|
A variety of income sources
considered |
|
|
Must secure remaining
funds via gifts, loans, grants, etc. |
|
Must demonstrate responsible
payment history |
|
|
