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With so many loan programs and home equity loans available, it is easy to get confused and make the wrong choice. To help you make the right decision we offer you the overview of the various programs, which may be available to you.
Please call one of our mortgage specialists for more information: 773-229-9891 or 847-268-0700.
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- Fixed Rate Mortgages
- 40 year fixed
- 30 year fixed
- 20 year fixed
- 15 year fixed
- 10 year fixed
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- Monthly payments are fixed over the life of the loan
- Interest rate does not change
- Can refinance if rates go down
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- Higher interest rate
- Higher mortgage payments
- Rate does not drop if interest rates improve
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- Adjustable Rate Mortgages
- 10/1 ARM
- 7/1 ARM
- 3/1 ARM
- 1 year ARM
- 6 month ARM
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- Lower payment over a shorter period of time
- Rates and payments may go down if rates improve
- May qualify for higher loan amounts
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- Payments may change over time
- Potential for high payments if rates go up
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- Balloon Mortgages
- 7 year
- 5 year
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- Lower payment over a shorter period of time
- Many balloon mortgages offer the option to convert to a new loan after the initial term.
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- 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
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- First Time Buyer Programs
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- Lower down payment
- Easier to qualify
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- May be subject to income and property value limitations
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- Don’t need to verify income
- Faster approval
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- Higher rates
- Higher down payment
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- Imperfect Credit Programs
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- 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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- Higher rates
- Terms may not be as favorable
- Harder to get long term fixed loans
- Loans may have prepayment penalties
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- Home Equity Line of Credit
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- You only borrow what you need
- Pay interest only on what you borrow
- Flexible access to funds
- Interest may be tax deductible
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- Rates can change. The maximum interest rate is normally high.
- Payments can change
- Harder to refinance your first mortgage
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- Three or four payment options: minimum payment, Interest-only, fully amortized payment (30 or 15 years)
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- Harder to get long term fixed loans
- Loans may have prepayment penalties
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Besides our standard loan programs, we also have a large number of unique programs to serve your needs:
- Purchase a house with 0 down
- Piggyback loans 80-20. No PMI payments even with 5% or 10% down.
- Loans with no PMI even with less then 20% down
- Debt consolidation programs
- Construction loans
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