Loan Programs
There are many loan programs to fit almost any need. Please call and ask which loan program best fits your situation.
Recommended Programs
Use the information below to choose the best program for your need.
| Years you plan to stay in the house: |
Recommended Program(s): |
|---|---|
| 1 – 3 | 3/1 SOFR ARM, 1 year SOFR ARM or 6 month SOFR ARM |
| 3 – 5 | 5/1 SOFR ARM |
| 5 – 7 | 7/1 SOFR ARM |
| 7 – 10 | 10/1 SOFR ARM, 30 year fixed or 15 year fixed |
| 10+ | 30 year fixed or 15 year fixed |
- 15-Year and 30-Year Fixed Rate
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Payment and rate stay the same from start to finish plus tax.
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Adjustable Rate Mortgage (SOFR ARM)
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Lowest start rate. After an initial period a set interest rate, the rate will adjust every 6 months or every 12 months depending on the program. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.
- 5/1 and 7/1 ARM
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Rate is fixed for the first 5 or 7 years, then shifts to an adjustable rate mortgage (SOFR ARM).
Which Program is best for me?
Here are a few things to keep in mind when selecting a loan program.
| 15-Year and 30-Year Fixed Rate | ||
|---|---|---|
| Advantages: | Disadvantages: | |
|
Maximum interest deduction for taxes, sometimes easier to qualify, stable predictable payments, high loan to value, lower down payment, possible secondary financing if needed.
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Pay more interest over the life of the loan, higher starting interest rate, Lower debt ratio (Larger Income to qualify) Higher monthly payment.
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| Advantages: | Disadvantages: | |
|---|---|---|
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Lower starting rate than 30 year fixed. Great for refinancing from a higher rate use when you plan a move in 5-7 years. Some are convertible to 30-yr fixed or a treasury SOFR ARM, low fees, good rates.
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Loan Balance Due can Change Long Term Financial Planning If You Plan to Live There Over 7 Years.
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