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WHICH LOAN IS RIGHT FOR ME?

Years you plan to stay in the house Recommended program
1-3 3/1 ARM, 1 year ARM or 6 month ARM
3-5 5/1 ARM
5-7 7/1 ARM
7-10 10/1 ARM, 30 year fixed or 15 year fixed
10+ 30 year fixed or 15 year fixed

Loan Programs Advantages Disadvantages

Fixed Rate 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

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

Balloon Mortgages
   7 year
   5 year

  • 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.

  • Risk of rates being higher at the end of the initial fixed period
  • Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option

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 1st mortgages
  • Harder to refinance your first mortgage

Besides our standard loan programs, we also have a large number of unique
programs to serve your needs:

  • Purchase a house with 0 down
  • Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with 5% or 10% down.
  • Debt consolidation programs
  • Home Improvement loans
  • Qualify even if you may have been turned down before!

 




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