You need to visit with a Mortgage Broker to determine the best program for
your individual needs. The information below is just to help you
understand what options may be available.
Equity Home Mortgage
is a great place to start. Loan programs are designed to help buyers
achieve specific goals. It is important to take time to determine what
your goals are. The information listed below should be used only as a tool
to help you understand what option are available. Please take the time to
talk with a mortgage broker to determine what program is best for you. All
these programs are available in Portland, Gresham, Troutdale, Fairveiw, Sandy,
Damascus and Boring areas.
| 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
|
|
| Loan Program |
Advantages |
Disadvantages |
Adjustable Rate
Mortgages (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 Mortgages
|
- 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 |
| 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
|
