Loan Programs

What type of mortgage is best for you?

For more information, please call 212-947-8877 and ask to speak to a loan representative.

15-Year and 30-Year Fixed Rate

Payment and rate stay the same from start to finish

Advantages: Maximum interest deduction for taxes, sometimes easier to qualify, stable predictable payments, high loan to value, lower down payment, possible secondary financing if needed.

Disadvantages: Pay more interest over the life of the loan, higher starting interest rate, Lower debt ratio (Larger Income needed to qualify) Higher monthly payment.

Adjustable Rate Mortgage (ARM)

Lower start rate then a fixed loan. Rate is fixed for a set period (ex. 3 years, 5 years) then adjusts either every 6 months or every 12 months depending on the program index.

Advantages: Lower starting rate than 30 year fixed. Great for refinancing from a higher rate when you plan a move in 1-7 years. Available with the interest only option.

Disadvantages: If you remain in your house for longer than the fixed period, your rate can potentially increase after that period.

Option ARM

This is a new program offered by lenders. It offers the lowest possible monthly payment. With this program you have the choice of paying the minimum payment, interest only, principal and interest or accelerated payments.

Advantages: Offers payment rates as low as 1% for the first five years!

Disadvantages: If you choose to pay the minimum payment your principal balance may actually increase over time. The way to counter this is to pay a lump sum at the end of each year.

Interest Only

Interest only loan programs are a great way to keep your monthly payment as low as possible. You pay only the interest due on your loan each month. Of course, if you want you can also increase your payment amount to be applied to your principle balance.

Advantages: Low monthly payments. Reduces your monthly payment by approximately $100 per $100,000 financed. The full pament is usually tax deductible.

Disadvantages: Principle balance remains the same unless you pay additional towards the balance each month.

Additional Comments

This information gives you only the basics of the many types of loan products available. The type of mortgage program you choose can have large financial advantages or disadvantages. Therefore, it is important that you speak to one of our mortgage professionals to determine the best program for you.