Loan Programs

Finding the best mortgage is more than just finding the lowest mortgage rate. The best mortgage is different for each individual, and is based on many factors other than the lowest rate. This makes comparing mortgage loans a very important step. MyBestMortgage.com finds the lowest mortgage for you in the long run, not just right now, by evaluating the different options for mortgage loans to meet your needs. Our trained mortgage professionals can explain the different types of mortgages to make sure you save money on your loan program.

This chart breaks down the different kinds of mortgage loans, so you can see at a glance what the advantages and disadvantages are to each of the mortgage loans. Compare and contrast their various features to figure out which option would work best for you.

Years you plan to stay in the house	Recommended program
1-3	3/1 ARM, 1 year ARM or 6 month ARM
3-5	5/1 ARM
5-7	7/1 ARM
7-10	10/1 ARM, 30 year fixed or 15 year fixed
10+	30 year fixed or 15 year fixed

Loan Programs	Advantages	Disadvantages
Fixed Rate Mortgages 30 year fixed 15 year fixed	Monthly payments are fixed over the life of the loan Interest rate does not change Protected if rates go up Can refinance if rates go down	Higher interest rate Higher mortgage payments Rate does not drop if interest rates improve
Adjustable Rate Mortgages 10/1 ARM 7/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM	Lower initial monthly payment Lower payment over a shorter period of time 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 7 year 5 year	Lower initial monthly payment Lower payment over a shorter period of time 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 lower rates	May be subject to income and property value limitations Some programs which have government subsidies may have a recapture tax if you sell the house too early.
Stated Income Programs	Don't need to verify income Faster approval	Higher rates Higher down payment
No point, No fee Programs	No closing costs Less money required to close	Higher rates Higher payments
Imperfect Credit Programs	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	Higher rates Terms may not be as favorable Harder to get long term fixed loans Loans may have prepayment penalties
Home Equity Line of Credit	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

Loan Programs

Fixed Rate Mortgages

Adjustable Rate Mortgages

Balloon Mortgages

First Time Buyer Programs

Stated Income Programs

No point, No fee Programs

Imperfect Credit Programs

Home Equity Line of Credit

Home Equity Fixed Loan

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