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Programs
|
Pros
|
Cons
|
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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
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First
Time Buyer Programs
|
- Lower
down payment
- Easier
to qualify
- Lower
rates may be available
|
- May
be subject to income and property
value limitations
- Some
government subsidized programs may
generate a recapture tax if you sell
the house too soon
|
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Interest
Only Programs
|
- You
have several payment options
- Lower
monthly payments
- Qualify
for a higher loan amount
- Qualify
at the interest only payment
- Option
to pay the full normal payment
- Interest
only payments for up to ten years
|
- Higher
rates
- Principal
loan balance will not decrease during
the interest only payment period
- Payment
will be higher for the remaining term
|
|
Credit Score Programs -
590
to 650
|
- Potential
for reestablishing credit if you pay
your mortgage on time
- When
used for debt consolidation, you may
be able to reduce your monthly debt
payment
|
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Home
Equity Fixed Loan
|
- Fixed
payments
- Interest
may be tax deductible
- Get
cash out for any purpose
|
- Higher
interest rates compared to first
mortgage
- Harder
to refinance your first mortgage
- Interest
is paid on the entire loan amount,
compared to an equity line of credit
|