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Loan
Programs
Fixed-Rate
Mortgages
30-year fixed, 15-year fixed |
| Advantages: |
Disadvantages: |
- Monthly
payments are fixed over the life of the loan
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Interest rate does not change
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You’re protected if rates increase
- Option
to refinance if rates decrease
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- Higher
interest rate
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Higher mortgage payments
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Rate does not drop if interest rates decrease
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Adjustable
Rate Mortgages
10/1 ARM, 7/1 ARM, 3/1 ARM, 1-year ARM, 6-month ARM, 1-month
ARM |
| Advantages: |
Disadvantages: |
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Lower initial monthly payment
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Lower payment over a shorter period of time
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Rates and payments may go down if rates decrease
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May qualify for higher loan amounts
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More risk
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Payments may change over time
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Potential for high payments if rates increase
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Balloon
Mortgages
7 year, 5 year |
| Advantages: |
Disadvantages: |
- Lower
initial monthly payment
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Lower payment over a shorter period of time
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Many balloon mortgages offer the option to convert to
a new loan after the initial term.
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- Risk
of rates being higher at the end of the initial fixed
period
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Risk of foreclosure if you cannot make balloon payment,
refinance or exercise the conversion option
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| First-Time
Buyer Programs |
| Advantages: |
Disadvantages: |
- Lower
down payment
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Easier to qualify
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You may get lower rates
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May be subject to income and property value limitations
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Some programs with government subsidies may have a recapture
tax if you sell the house too early.
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| Stated
Income Programs |
| Advantages: |
Disadvantages: |
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Don’t need to verify income
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Faster approval
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- Higher
rates
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Higher down payment
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| No
Point, No Fee Programs |
| Advantages: |
Disadvantages: |
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No closing costs
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Less money required to close
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Higher rates
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Higher payments
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| Imperfect
Credit Programs |
| Advantages: |
Disadvantages: |
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Potential for reestablishing credit if you pay your mortgage
on time.
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When used for debt consolidation, you may be able to reduce
your monthly debt payment
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Higher rates
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Terms may not be as favorable
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Harder to get long-term fixed loans
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Loans may have prepayment penalties
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| Home
Equity Line of Credit |
| Advantages: |
Disadvantages: |
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You only borrow what you need
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Pay interest only on what you borrow
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Flexible access to funds
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Interest may be tax deductible (ask your tax advisor)
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Rates can change. Maximum interest rate is typically high.
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Payments can change
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Harder to refinance your first mortgage
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| Home
Equity Fixed Loan |
| Advantages: |
Disadvantages: |
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Fixed payments
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Interest may be tax deductible (ask your tax advisor)
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Higher interest rates than first mortgages
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Harder to refinance your first mortgage
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| Alternative
Loan Programs |
One
of our many unique, alternative loan programs
might best serve your needs: |
- No PMI payments even with 5% or 10% down.
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Debt consolidation programs
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Home Improvement loans
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You may qualify even if you may have been turned down
before!
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Home
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| ©2011 Carlson Mortgage, LLC |
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