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Loan Programs	Advantages	Disadvantages
Fixed Rate Mortgage
30 year fixed 20 year fixed 15 year fixed 10 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
No Doc Mortgage NINA (Includes Limited and Stated Doc: SISA)
Fixed Rates Adjustable Rates Hybrid ARMs	Don’t need to verify income: No Income No Assets State Income Stated Assets (Combo of above) Faster approval	Slightly higher rates Lower LTV's in some cases
*Adjustabe Rate Mortgage (Hybrid ARMs* fixed for 3yrs or more)**
10/1 ARM 7/1 ARM 5/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM **Interest only option ---	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 **Even lower payments---	More risk Payments may change over time Potential for high payments if rates go up **Does not pay down the principle
Low Rate Mortgage
MTA, COFI, COSI	The lowest possible “payment”- 4 payment choices	Adjust to higher rates overtime Higher payments overtime Can result in Neg Amortization
No Point; No Closing Costs Loan; No Fee
Fixed Rates Adjustable Rates Hybrid ARMs	No closing costs Less money required to close Lower down payment	Higher rates Higher payments
First Time Homebuyer Program
Typically: 30/15 Year Fixed	Easier to qualify Low or no downpayment	May be subject to income and property value limitations Possible higher rates
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
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

Loan Advisor

With so many loan programs sometimes it is hard to distinguish one product from another. The following table was designed to remove some of the confusion that is typically associated with loan product descriptions.

Please note that the Loan Programs heading in column one could more accurately be referred to as "Loan Categories." Please contact us is you have any additional suggestions to promote ease of understanding.

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