Mortgage Consultants Group

Loan Programs  

Which loan is right for me?

Often the answer to this question is based around the number of years you plan to stay in your home. Each type of loan has specific terms that affect the amount of the payment, the interest rate, and the length of the pay back. However, this is not the only factor. It is important to weigh many factors such as income projections, economic trends, and personal debt management preferences. Weigh the pros and cons of each loan type. The important thing is to make an educated decision.

 


 Years you plan to stay in home
 Best program
1-3
3-5
5-7
7-10
10+

3/1 ARM, 1 year ARM or 6 month ARM
5/1 ARM
7/1 ARM
10/1 ARM, 30 year fixed or 15 year fixed
30 year fixed or 15 year fixed

   Program           

 Pros

 Cons

Fixed Rate Mortgages

  • 30 Year fixed
  • 15 Year fixed
  • Monthl 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
  • Lower initial monthly payment
  • Lower payment over a shorter period 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
No point, No fee Programs
  • No closing costs
  • Less money required to close
  • Higher rates
  • Higher payments
Home Equity Line of Credit
  • You only borrow what you need
  • Pay interest only on what you borrow
  • Flexible access to funds
  • Interest may be tax deductible
  • Rates can change
  • Payments can change
  • May be harder to refinance your first mortgage
Home Equity Fixed Loan
  • Fixed payments
  • Interest may be tax deductible
  • May have higher interest rates than 1st mortgages
  • May be harder to refinance 1st mortgage

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