Residential Loans

Loan Programs	Advantages	Disadvatages
Fixed Rate Mortagages
20 Year Fixed 10 Year Fixed	Monthly payments are fixed over the life of the loan Interest rate does not change Protected if rates go up Can refinance is rates go down	Higher Interest Rate. Higher mortgage payments Rate does not drop if interest rates improve

Loan Programs	Advantages	Disadvatages
Adjustable Rate Mortgages
10/1ARM 7/1 ARM 3/1 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

Loan Programs	Advantages	Disadvatages
Streamline Refinance
FHA 30 Yr Fixed	Use the home's equity to pay closing costs. Cost of refinance may be tax deductible	May be subject to property value and credit limitations

Loan Programs	Advantages	Disadvatages
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

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