No point, No fee Programs Advantages: – No closing costs – Less money required to close Disadvantages: – Higher rates – Higher payments
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Stated Income Programs Advantages: – Don’t need to verify income – Faster approval Disadvantages: – Higher rates – Higher down payment
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First Time Buyer Programs Advantages: – Lower down payment – Easier to qualify – Sometimes you may get lower rate Disadvantages: – 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.
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Balloon Mortgages 7 year 5 year Advantages: – 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. Disadvantages: – Risk of rates being higher at the end of the initial fixed period – Risk [...]
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Adjustable Rate Mortgages 10/1 ARM 7/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM Advantages: – 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 Disadvantages: – More risk – [...]
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