Mortgage Options

C2 Certified Reverse Mortgage Specialist

NMLS #242792 | DRE #0118730

C2 Financial Albany, CA Branch NMLS#: 1899037 | DRE #01821025

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510.410.7572

WHICH LOAN IS RIGHT FOR YOU?

It’s important to know all of your loan options. The table below shows the different loan options and their pros and cons.

Please contact us with any questions. This is a quick guide on your loan option, however, we can answer any specific questions you may have. An informed mind makes the best decision. We’re here to help.

MORTGAGE OPTIONS

Mortgage Options based on the number of years you plan to stay in your home

1-3 years: 3/1 ARM, 1 year ARM or 6 month ARM
3-5 years: 5/1 ARM
5-7 years: 7/1 ARM
7-10 years: 10/1 ARM, 30 year fixed or 15 year fixed
10+: 30 year fixed or 15 year fixed

MORTGAGE PROGRAMS

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

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 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 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 Buyers

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 payments

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, max rates are 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 1st mortgage

510.621.5917

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