Mortgage Center

Program

Advantages

Disadvantages

30 year/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 and a higher cost loan
• Higher mortgage payments
• Rate does not drop if interest rates improve

Adjustable Rate Mortgages

• Lower initial monthly payment
• Lower payment over a shorter period of 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

Balloon Mortgages

• Lower initial monthly payment
• Lower payment over a shorter period of time
• Many balloon mortgages offer the option to convert to a new loan after the initial term.

• Risk of rates being higher at the end of the initial fixed period
• Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option

Pick-A-Payment

• Four payment options every month between a 15 year, 30 year, interest only, and minimum payment
• Provides Flexibility
• Maximizes Cash flow

• Rate may change
• Payments may change over time

Equity Builder Loan

• Rapid Amortization
•  Early Mortgage Payoff
• Save thousands in interest

• If rates change, payments may change

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.
• The maximum interest rate is normally high.
• Payments can change
• Harder to refinance your first mortgage

Home Equity Fixed Loan

• Fixed payments
• Interest may be tax deductible

• Higher interest rates than on 1st mortgages
• Harder to refinance your first mortgage