Loan Programs

mclerma@azmortgagelending.com

Besides the standard loan programs listed below, I also have a large number of unique programs to serve your needs:

	Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with 5% or 10% down.
	Interest Only products
	100% Financing (P&I or Interest Only)
	0% Down teacher programs
	103% and 107% loan programs
	Qualify even if you may have been turned down before!

Loan Program

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

Interest Only Mortgages

30 year fixed (10 or 15 yr IO term)

7/1 ARM

5/1 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
	Can qualify for higher loan amounts
	Gives you the flexibility to pay the interest only or make a higher payment that goes toward principal

	Risk of rates being higher at the end of the initial fixed period
	Payments may change over time
	Since the principal is not being reduced only potential gains are through increasing equity

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 1^st mortgages
	Harder to refinance your first mortgage