In the past, every homeowner got the same loan: a 30-year fixed mortgage. Today there are many different loan programs and choosing the right one could save you hundreds of dollars on your monthly payments.
Plan On Living In The House
You can choose suitable loan packages depending on your needs and life plan or the best personal loans of February 2023.
| How Long Do You Plan On Living In The House? | We Recommend |
| Not Very Long (1-3 Years) | 3/1 ARM, 1-year ARM, or 6-month ARM |
| A few years (3-5 Years) | 5/1 ARM |
| At least 5 years (5-7 years) | 7/1 ARM |
| Around 10 years ( 7-10 years) | 10/1 ARM, 30 yr fixed or 15 yr fixed |
| A long time (10 plus years) | 30-year fixed or 15-year fixed |
Loan programs
| Loan Programs | Advantages | Disadvantages |
| 30 year Fixed 15 year Fixed |
Monthly payments won’t change
Interest rate Fixed Protected if rates go up Can refinance if rates go down |
Higher interest rate
Higher mortgage payments The rate does not drop if interest rates improve |
| Adjustable Rate Mortgages (ARMS) | Lower initial monthly payment
Lower cost over a shorter period 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 cost over a shorter period 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 |
| First-Time Buyer Programs | Lower down payment
Easier to qualify Sometimes you may get a lower rate |
This may be subject to income and property value limitations
Some programs with government subsidies may have a recapture tax if you sell the house too early. |
| No point, No fee Programs | No closing costs
Less money is required to close |
Higher rates
Higher payments |
| MCredit on MFast | 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 |
In Addition to these standard loan programs we offer a large number of specialized loans to fit your needs please call or email for more information.
