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Loan Programs  15-Year and 30-Year Fixed Rate Payment and rate stay the same from start to finish plus tax. 5 and 7 Year Balloons Lower start rate. Some of the balloon programs may be converted to an adjustable rate or a fixed rate after the 5 or 7 years, with very low fee and attractive rate. Adjustable Rate Mortgage (ARM) Lowest start rate Adjusts either every 6 months or every 12 months depending on program and grade and is based on the economy 6% ceiling for prime and 7% ceiling for sub-prime. 5/1 and 7/1 Fixed Rate Rate is fixed for the first 5 or 7 years, then shifts to an adjustable rate mortgage (ARM). 2/28 and 3/27 ARM An ARM program that is fixed for the first 2 or 3 years, then shifts into a 6 month adjustable rate mortgage. It is a sub-prime program giving you a rate lower than the sub-prime 30-year fixed, and if you have had credit problems, it allows a window of time for credit rebuilding and seasoning. You will then want to refinance this loan. Which Program is best for me? Here are a few things to keep in mind when selecting a loan program.  |
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