+ Fixed Rate Mortgages (FRM)
A mortgage in which the interest rate does not change during the entire term of the loan.
• Predictable monthly payments
• Less risk if market conditions cause rates to rise
• Rate does not change
• You pay more in interest
• Higher interest rate
• Unable to take advantage of lower interest costs if market changes to lower rates
+ Adjustable Rate Mortgages (ARM)
A mortgage whose interest rate changes periodically based on the changes in a specified index.
• Lower initial monthly payment
• You pay less for short term ownership
• May be easier to qualify for higher loan amounts
• More risk
• Inability to predict future housing costs
• Potential higher payments (at max. interest rate)
+ Stated Income Mortgages
• Don’t need to verify income
• Higher rates
• Need a low LTV to qualifier rates
+ Combination Loans (such as an 80/10/10)
With this type of loan, you receive a first mortgage for 80 percent of the loan amount, and a second mortgage at the same time for the remainder of the balance.
• Avoid PMI
• Potential tax advantages
• Possibly higher monthly payments
• Two monthly payments instead of one
+ Home Equity Line of Credit
A credit line that is secured by a second deed of trust on a house.
• Flexible access to funds
• You only draw what you need
• You only pay interest on what you borrow
• Ties up equity making it unavailable for other needs
• Higher interest rate than a first mortgage
+ Home Equity Loan
a loan secured by a second deed of trust on a house, typically used as a home improvement loan.
• Predictable fixed payments
• Possible tax advantages
• Cannot pay down and withdraw additional funds
buying & selling
987 CORPORATE WAY,
FREMONT, CA. 94539