| 30 Year Fixed-Rate Mortgage |
Mortgage Description:
Interest rate and monthly payment (P&I) remain constant for 30 years |
Appropriate for Borrowers Who:
Plan to live in property for 5-10 years
Prefer payment stability for longer terms |
| 15 Year Fixed-Rate Mortgage |
Mortgage Description:
Interest rate and monthly payment (P&I) remain constant for 15 years |
Appropriate for Borrowers Who:
Have the financial capability to sustain larger P&I payment
Prefer to pay off a mortgage loan early |
| 10/1 (ARM) Adjustable Rate Mortgage |
Mortgage Description:
Interest rate and monthly payment (P&I) remain constant for 10 years
Adjusts annually for the remainder of the loan
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Appropriate for Borrowers Who:
Prefer initial lower interest rates
Are comfortable with the uncertainty of future rates and able to tolerate future annual payment adjustments
Expect to move or sell the property within 10 years
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| 7/1 (ARM) Adjustable Rate Mortgage |
Mortgage Description:
Interest rate and monthly payment (P&I) remain constant for 7 years
Adjusts annually for the remaining life of the loan
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Appropriate for Borrowers Who:
Prefer initial lower interest rates
Are able to tolerate annual payment adjustments
Comfortable with the uncertainty of future interest rates
Expect to move or sell the property within 7 years
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| Interest-Only Adjustable Rate Mortgage
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Mortgage Description:
Interest rate fixed for specific term with interest-only payments
Additional principal payments are typically allowed.
Negative amortization may occur
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Appropriate for Borrowers Who:
Have short-term loan plans; e.g. able to pay loan off within certain period
Are comfortable with the uncertainty of future interest rates for a potential refinance at current rates
Expect to move or sell the property within short period
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| 80/10/10 or 80/15/5 Mortgage
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Mortgage Description:
Constant P&I
Avoidance of PMI with 80% first mortgage
30 year amortization on first mortgage and 15 year term amortization for second mortgage
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Appropriate for Borrowers Who:
Want to avoid PMI and enjoy smaller payments
Utilize the income tax deduction of the second mortgage
Have 10% or 5% down payment capability
Have bonus income potential to repay second mortgage early
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| 80/20 Mortgage
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Mortgage Description:
100% loan no down payment
No PMI
Tax deduction of interest on first AND second mortgage
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Appropriate for Borrowers Who:
No down payment
Seller contribution option of up to 6%
No PMI
No prepayment penalty
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| 1 Year (ARM) Adustable Rate Mortgage
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Mortgage Description:
Interest rate adjusts annually for the life of the loan
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Appropriate for Borrowers Who:
Prefer to take advantage of lowest initial interest rates
Comfortable with annually interest rate changes
Cannot qualify at fixed rate mortgage programs
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| 1 Month Or 3 Month Libor ARM Mortgage
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Mortgage Description:
Interest rate changes monthly or every three months with Libor index
Monthly payment remains fixed for 1 year
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Appropriate for Borrowers Who:
Expects periodic bonus income
Prefer lower initial interest rate
Are comfortable with the uncertainty of mortgage interest rates
Desire flexibility of future plans in the property and/or have corporate transfer relocation option available
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