Benchmark Mortgage, Inc. offers a variety of loan programs to meet your needs.
| # of Years You Plan to Stay In The House |
Recommended program |
| 1 - 3 |
3/1 ARM, 1 year ARM |
| 3 - 5 |
5/1 ARM |
| 5 - 7 |
7/1 ARM |
| 7 - 10 |
10/1 ARM, 30 year fixed, 15 year fixed |
| 10+ |
30 year fixed, 15 year fixed |
|
|
| Loan Programs |
Advantages |
Disadvantages |
|
|
|
| Fixed Rate Mortgages |
|
|
- 30 year fixed rate
- 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
- 5/1 ARM
- 3/1 ARM
- 1 year 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 Programs |
|
|
- 30 Year Fixed
- 10/1 ARM
- 7/1 ARM
- 5/1 ARM
- 3/1 ARM
- 1 year ARM
|
- Increased cash flow
- Much lower monthly payment over interest-only period
- Qualifying at interest only payment increases buying power
|
- No paydown of principal if interest only payment made
- Rates may be slightly higher than fully amortizing products
- More stringent underwriting guidelines
|
| Balloon Mortgages |
|
|
|
|
- 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 nitial 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 valuation limitations
- Some programs which have government subsidies may have a recapture tax if you sell the house too early
|
| No Point, No Fee Programs |
|
|
|
- No closing costs
- Less money required to close
|
- Higher rates
- Higher down payment
|
|
|
|
|
|
|
Loan Programs