Which loan is right for me?

Loan Programs

Fixed Rate Mortgages

30 year fixed
15 year fixed

Advantages
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.

Disadvantages
Higher interest rate.
Higher mortgage payments.
Rate does not drop if interest rates improve.

FHA Fixed Rate Mortgages

30 year fixed
15 year fixed

• Advantages
Less stringent qualifying standards.
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.

• Disadvantages
Mortgage insurance required.
Higher mortgage payment.
Rate does not drop if rates improve.
Mortgage limits.

Adjustable Rate Mortgages

10/1 ARM
7/1 ARM
3/1 ARM
1 year ARM
6 month ARM
1 month ARM

• Advantages
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.

• Disadvantages
More risk.
Payments may change over time.
Potential for high payments if rates go up.

FHA Adjustable Rate Mortgages

1 year ARM
3/1 ARM
5/1 ARM
7/1 ARM

• Advantages
Less stringent qualifying standards.
Lower initial monthly payment.
Lower payment over a shorter period of time.
Rates and payments may go down if rates improve.

• Disadvantages
Mortgage Insurance required.
Mortgage Limits.
More risk.
Payments may change over time.
Potential for high payments if rates go up.

Balloon Mortgages

7 year
5 year

• Advantages
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.

• Disadvantages
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 Buyer Programs

• Advantages
Lower down payment.
Easier to qualify.
Sometimes you may get lower rates.

• Disadvantages
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

• Advantages
Don’t need to verify income.
Faster approval.

• Disadvantages
Higher rates.
Higher down payment.
Much harder to find an investor to take and service the loan.

 

No point, No fee Programs

• Advantages
No closing costs.
Less money required to close.

• Disadvantages
Higher rates.
Higher payments.

Imperfect Credit Programs

• Advantages
Potential for re-establishing credit if you pay your mortgage on time.
When used for debt consolidation, you may be able to reduce your monthly debt payment.

• Disadvantages
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

• Advantages
You only borrower what you need.
Pay interest only on what you borrower.
Flexible access to funds.
Interest may be tax deductible.
Zero closing cost option

• Disadvantages
Rates can change. The maximum interest rate is normally high.
Payments can change.
Harder to refinance your first mortgage.

Home Equity Fixed Loan

• Advantages
Fixed payments.
Interest may be tax deductible.
Zero closing cost option

• Disadvantages
Higher interest rates than on 1st mortgages.
Harder to refinance your first mortgage.

Besides our standard loan programs, we also have a large number of unique programs to serve your needs:

Debt consolidation programs.
Home improvement loans.

Qualify even if you may have been turned down before!
Professionals that can build you a plan to buy a home due to issues you may have that prevent you from buying now!

Big River Mortgage
11925 SE Dorset Lane
Happy Valley, OR  97086

P::503-496-4949