Fixed Interest Rate Mortgages

This loan is the workhorse of the industry because of its stability.  The interest rate remains the same during the length of the  loan.  The interest rate is slightly higher  at origination than  other loan products but if interest rates go up this loan is a bargain and if they go down you can refinance.   The 30 year loan is the most popular but  20 year &  15 year fixed rate loans are also readily available.   A fast payback results in slightly  higher monthly payments but  the savings of overall interest during the course of the loan is a major benefit.

Adjustable Rate Mortgages

There are many varieties of  Adjustable Rate Mortgages.  Lenders are comfortable with these loans because they are not locked into an interest rate for the life of the loan but can adjust the interest rate periodically to reflect market conditions.  Borrowers benefit from low initial starting interest rates.  This  means  it may be easier to qualify for larger loan amounts.  Interest rates and monthly payments will  adjust periodically  up or down according to whatever index the loan is tied to.

Balloon  Mortgages

Balloon mortgages  with  5 & 7 year due dates can be great opportunities  because they offer the most competitive interest rates.  They are not for the fainthearted but can be a very good choice when you know you will be leaving the area within the timeframe of the loan.  Some balloon programs offer a conversion option  to a new loan after the initial term.  There is a risk of foreclosure if you cannot make the balloon payment, refinance the loan or exercise the conversion option.

First Time Buyer Programs

There are many programs available to first time buyers.  The most common features are lower down payments and ease of qualifying.  Oftentimes these loans may be subject to income and property valuation limitations.  Some programs which have government subsidies may have a recapture clause if you sell the home prior to maturity of the original agreement.

Home Equity Lines of Credit

These can be very flexible loans.  You only borrow what you need and pay interest only on what you borrow.  The interest may be tax deductible.  Although touted as having low interest rates the maximum interest rate is usually  high.  These loans can be a great benefit when you desire flexible access to funds.

Debt Consolidation Loans

A debt consolidation loan will reduce  monthly debt service   for those with a lot of high interest credit card debt that also have equity locked into their homes.

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