Loan Program Guide

Use the chart below to find out which loan program best suits your needs.

PROGRAM	Appropriate for borrowers who:	Loan Characteristics
30 YEAR FIXED RATE MORTGAGE	plan to live in property more than 10 years like total payment stability	Interest rate & monthly payment remain the same for 30 years
10/1 YEAR ADJUSTABLE RATE MORTGAGE	plan to live in property more than 10 years like initial payment stability, can accept later changes OR plan to move within 10 years want loan to remain in force in case plans change	Interest rate & monthly payment remain the same for 10 years Starting the 11th year, interest rate adjusted every year, so payment is subject to change every year for remainder of loan
7/23 (2-Step) or '30 due in 7' MORTGAGE	plan to live in property more than 10 years can tolerate one payment adjustment OR plan to move within 7 years want to remain in force in case plans change	Interest rate & monthly payment remain the same for 7 years Conversion option: On the 8th year, interest rate adjusted to reflect prevailing interest rates, resulting payment will remain the same for remainder of loan
7/1 YEAR ADJUSTABLE RATE MORTGAGE	plan to live in property more than 7 years like initial payment stability, can accept later changes OR plan to move within 7 years want loan to remain in force in case plans change	Interest rate & monthly payment remain the same for 7 years Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan
7 YEAR BALLOON MORTGAGE	plan to live in property more than 7 years are willing to refinance at prevailing market rates OR plan to move within 7 years like payment stability	Interest rate & monthly payment remain the same for 7 years At the end of 7 years, loan is due in full. Borrower must refinance into new loan at prevailing interest rates
5/25 (2-Step) or '30 due in 5' MORTGAGE	plan to live in property more than 5 years can tolerate one payment adjustment OR plan to move within 5 years want loan to remain in force in case of plans change	Interest rate & monthly payment remain the same for 5 years Conversion option: On the 6th year, interest rate adjusted to reflect prevailing interest rates, resulting payment will remain the same for remainder of loan
5/5 & 5/1 YEAR ADJUSTABLE RATE MORTGAGES	plan to live in property more than 5 years like initial payment stability, can accept later changes OR plan to move within 5 years want loan to remain in force in case plans change	Interest rate & monthly payment remain the same for 5 years Starting the 6th year, interest rate adjusted every 5 years (for 5/5 ARM) and every year (for 5/1 ARM)
5 YEAR BALLOON MORTGAGE	plan to live in property more than 5 years are willing to refinance at prevailing market rates OR plan to move within 5 years like payment stability	Interest rate & monthly payment remain the same for 5 years At the end of 5 years, loan is due in full. Borrower must refinance into new loan at prevailing interest rates
3/3 & 3/1 YEAR ADJUSTABLE RATE MORTGAGES	plan to live in property more than 3 years like initial payment stability, can accept later changes OR plan to move within 3 years want loan to remain in force in case plans change	Interest rate & monthly payment remain the same for 3 years Starting 4th year, interest rate adjusted every 3 years (for 3/3 ARM) and every year (for 3/1 ARM)
1 YEAR ADJUSTABLE RATE MORTGAGES	want to take advantage of lowest rate possible are willing to accept yearly payment changes OR cannot qualify at higher rate programs	Interest rate adjusted every year, so monthly payment is subject to change every year for entire 30 year loan term