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Years you plan to stay in the home

Recommended Mortgage program

1-3 years

3/1 ARM, 1 year ARM or 6 month ARM

3-5 years

5/1 ARM

5-7 years

7/1 ARM

7-10 years

10/1 ARM, 30 year fixed or 15 year fixed

10+ years

30 year fixed or 15 year fixed

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Loan Program

Advantages

Disadvantages

Fixed Rate Lenox Mortgage

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

 

Loan Program

Advantages

Disadvantages

 

Adjustable Rate Mortgage (ARM)

10/1 ARM

7/1 ARM

5/1 ARM

3/1 ARM

1 year ARM

6 month ARM

1 month 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

 

 

Loan Program

Advantages

Disadvantages

 

Balloon Mortgage

7 year

5 year

Lower initial monthly payment

Lower payment for a predetermined 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, refinance, or exercise the conversion option

Balloon payment requires you to sell or refinance after the term, as opposed to a 7/1 or 5/1 program with a 30 year term

 

 

Loan Program

Advantages

Disadvantages

 

First Time Buyer Programs

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

 

 

Loan Program

Advantages

Disadvantages

 

Stated Income Programs

Don't need to verify income

Faster approval

Good for borrowers who may not qualify with a full income documentation program

 

 

 

 

 

 

 

Higher rates

Higher down payment

 

 

Loan Program

Advantages

Disadvantages

 

Interest Only Programs

You have several payment options

Lower monthly payments

Qualify for a higher loan amount

Qualify at the interest only payment

Option to pay the full normal payment

Interest only payments for up to ten years

Higher rates

Principal loan balance will not decrease during the interest only payment period

Payment will be higher for the remaining term

 

 

Loan Program

Advantages

Disadvantages

 

No point, No fee Programs

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

 

 

Loan Program

Advantages

Disadvantages

 

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

 

 

 

 

 

Loan Program

Advantages

Disadvantages

 

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

May be free of closing costs

A good source for an emergency fund, if set up in advance

Can be used for debt consolidation and lower payments

Rates are usually lower than consumer loan or credit card rates

Rates can change. The maximum interest rate can be relatively high

Payments can change

Harder to refinance your first mortgage

 

 

Loan Program

Advantages

Disadvantages

 

Home Equity Fixed Loan

Fixed payments

Interest may be tax deductible

Get cash out for any purpose

Higher interest rates compared to first mortgage

Harder to refinance your first mortgage

Interest is paid on the entire loan amount, compared to an equity line of credit

 

In addition to our standard Emerald Coast Investments mortgage programs, you may benefit by obtaining one of our many special programs:

  • Purchase your home with no down payment using Private Mortgage Insurance (PMI) or Lender-paid Mortgage Insurance (MI).
  • Piggyback loans: 80-10-10 or 80-15-5. Avoid PMI payments by using Lender-paid MI.
  • Debt consolidation programs.
  • Home Improvement loans.
  • You may qualify for an Emerald Coast Investments Mortgage even if you've been turned down before!

 

Super Jumbo Loan Programs available to $15,000,000 contact our office for details

 

 


 


Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $424,100 for the contiguous states, District of Columbia, and Puerto Rico or below $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $625,500 with closing costs of $10,755. Jumbo Loans (whose maximum loan amount exceed $424,100 for the contiguous states, District of Columbia, and Puerto Rico or exceed $636,150 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,500,000 with closing costs of $19,500. Your actual APR may be different depending upon these factors.