• 30 year fixed
• 15 year fixed
• 40 year fixed
• 20 year fixed
• 25 year fixed

GOVERNMENT PROGRAMS

• FHA,
• VA or
• RDA

• 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

• Low or no down payment
• Easier Qualifying
• Easier Credit Score Requirements

• Higher interest rate
• Higher mortgage payments
• Rate does not drop if interest rates improve

• 7/1 ARM
• 5/1 ARM
• 3/1 ARM
• 1 year ARM

• Lower initial monthly payment
• Rates and payments may go down if rates improve
• May qualify for higher loan amounts
• 30 year term, no balloon payment

• More risk
• Payments may change over time
• Potential for higher payments if rates increase

• No out-of-pocket loan costs at closing
• Closing costs are paid from the lender rebate
• Less money required to close
• Refinance without increasing your loan amount

• Higher rates
• Higher payments
• Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you
• Some require a prepayment penalty for the first one to five years

• Lower down payment
• Easier to qualify
• Lower rates may be available

• May be subject to income and property value limitations
• Some government subsidized programs may generate a recapture tax if you sell the house too soon
• Education courses may be required to qualify for these loans