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| Adjustable Rate Mortgages |
| CalPRS |
| CalSTRS |
| FHA |
| FHA Streamline |
| First Time Buyer Programs |
| Fixed Rate Mortgages |
| Home Affordable |
| Home Equity Fixed Loan |
| Home Equity Line of Credit |
| Imperfect Credit Programs |
| No point, No fee Programs |
| Reverse Mortgage |
| VA |
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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
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Advantages:
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
Disadvantages:
More risk
Payments may change over time
Potential for high payments if rates go up |
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CalPRS
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CalSTRS
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FHA
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FHA Streamline
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First Time Buyer Programs
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Advantages:
Lower down payment
Easier to qualify
Sometimes you may get lower rate
Disadvantages:
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. |
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Fixed Rate Mortgages
30 year fixed
15 year fixed
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Advantages:
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
Disadvantages:
Higher interest rate
Higher mortgage payments
Rate does not drop if interest rates improve |
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Home Affordable
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Home Equity Fixed Loan
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Advantages:
Fixed payments
Interest may be tax deductible
Disadvantages:
Higher interest rates than on 1st mortgages
Harder to refinance your first mortgage |
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Home Equity Line of Credit
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Advantages:
You only borrow what you need
Pay interest only on what you borrow
Flexible access to funds
Interest may be tax deductible
Disadvantages:
Rates can change. The maximum interest rate is normally high.
Payments can change
Harder to refinance your first mortgage |
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Imperfect Credit Programs
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Advantages:
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
Disadvantages:
- Higher rates
- Terms may not be as favorable
- Harder to get long term fixed loans
- Loans may have prepayment penalties
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No point, No fee Programs
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Advantages:
No closing costs
Less money required to close
Disadvantages:
Higher rates
Higher payments |
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Reverse Mortgage
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VA
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Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $359,650 with closing costs of $7,193. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors.
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