Loan Programs

Which loan is right for me?

Below is a brief list of the types of loans available in today's environment. Not every one is right for you.

To make this process fulfilling and successful open communication and excellent listening skills are key. Remember, every picture tells a story. Putting together the full story is the fun part, coming up with the right ending is the most satisfying part.

Communicating all your needs and wants, allows your "Friendly Financial Wizard" to go that extra mile to fulfill as many of those needs and wants as possible. Thus allowing for that satisfying

"Happy Ending"

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 Excellent credit required

No points, No fees Programs	No closing costs Less money required to close	Higher rates Higher payments

Challenged Credit Programs	By paying you mortgage on time, you reestablish credit Allows you to be a homeowner while getting back on your feet.	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	Pay interest only on what you borrow Flexible access to funds Interest may be tax deductible	Rates generally change whenever Prime Rate changes. Maximum interest rate will be higher than first mortgages. Payments will change with the interest rate changes. Less equity available in your home which can make refinancing your 1st more difficult.

Home Equity Fixed Loan	Fixed payments Interest may be tax deductible	Higher interest rates than on 1^st mortgages Less equity available in your home which can make refinancing your 1st more difficult. Payment on the full line of credit due to requirement that all monies are to be taken out at close of escrow.

Besides our standard loan programs, we also have a large number of unique programs to serve your needs: Purchase a house with little or no money down Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with 5% or 10% down. Debt consolidation programs Home Improvement loans Tangible Solutions for Everyday Challenges!

Loan Programs

Brenda L Koster