Home Loans - Types of Loans

TYPES OF LOANS

Zero Down

• Ideal for people who either don't have a lot of ready cash for a down payment or are saving their funds for other uses.
• Increases savings by avoiding PMI (mortgage insurance).
• Increases the amount of your mortgage tax deduction.

Fixed Rate

• This loan is for people planning to stay in a home for more than five years.
• Stability and peace of mind with fixed principal and interest payments for the life of you loan.
• Protect yourself from rising rate increases.

Fixed ARMs

• A "fixed period" ARM offers the lowest rates. A great choice if you're planning to move or refinance within the initial fixed loan period.
• Adjustable Rate Mortgages (ARMs) offer the stability of rates fixed for 1 month, 6 months, 1-, 3-, 5-, 7- or 10 years.
• A great way to buy more home or minimize monthly payments.

Pay Option ARM

• Manage your cash better with flexible payment options - ideal for investors or a borrower with an inconsistent stream of income.
• Initial rates as low as 1%; down payments as low as 5%.
• The advantages of an ARM combined with up to 4 monthly
  payment options.
• Available on owner-occupied, vacation and investment properties.

Interest-Only

• Want lower payments? Pay only the interest - not the principal - for
  the first 10 years.
• Frees up cash for investments, home improvements, etc. or use the savings to qualify for up to 25% more home.
• Ideal if you're planning to move or refinance before the interest-only period expires.