Maine Purchase - Loan Programs

Which loan is right for me?
Loan Program
Advantages
Disadvantages
Fixed Rate Mortgages
30 year
20 year
15 year
10 year
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 rates (then ARM's)
Higher mortgage payments (then ARM's)
Rate does not drop if interest rates improve
Loan Program
Advantages
Disadvantages
Adjustable Rate Mortgages (ARM)
10/1 ARM
7/1 ARM
5/1 ARM
3/1 ARM
Lower initial monthly payment
Rates and payments may go down if rates improve
May qualify for higher loan amounts
30 year term, no balloon payment
More risk
Payments may change over time
Potential for higher payments if rates increase
Loan Program
Advantages
Disadvantages
Balloon Mortgages
7 year
5 year
Lower initial monthly payment
Lower payment for a predetermined period of time
Many balloon mortgages offer the option to convert to 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, refinance, or exercise the conversion option
Balloon payment requires you to sell or refinance after the term, as opposed to a 7/1 or 5/1 program with a 30 year term
Loan Program
Advantages
Disadvantages
First Time Buyer Programs
Lower down payment
Easier to qualify
Lower rates may be available
May be subject to income and property value limitations
Some government subsidized programs may generate a recapture tax if you sell the house too soon
Education courses may be required to qualify for these loans
Loan Program
Advantages
Disadvantages
Stated Income Programs
Don't need to verify income
Faster approval
Good for borrowers who may not qualify with a full income documentation program
Higher rates
Higher cost'
Loan Program
Advantages
Disadvantages
No Doc Loans
You do not have to verify income or assets
Qualify when income cannot be verified
Qualify when employment cannot be verified
Based on only FICO score and appraisal
Higher rates
Higher closing cost's
less programs to choose from
Loan Program
Advantages
Disadvantages
Interest Only
Qualify for more house
Much lower payments
Can pay towards the interest monthly if you choose
Higher rates
Higher closing cost's
You will not pay any interest for the first 5-10 years
Loan Program
Advantages
Disadvantages
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
Get into the House you want now, instead of later.
Higher rates
Terms may not be as favorable
Higher Closing Cost's
Harder to get long-term fixed loans
Loans may have prepayment penalties
Loan Program
Advantages
Disadvantages
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
May be free of closing costs
A good source for an emergency fund, if set up in advance
Can be used for debt consolidation and lower payments
Rates are usually lower than consumer loan or credit card rates
Rates can change. The maximum interest rate can be relatively high
Payments can change
Harder to refinance your first mortgage
Loan Program
Advantages
Disadvantages
Home Equity Fixed Loan
Fixed payments
Interest may be tax deductible
Get cash out for any purpose
Higher interest rates compared to first mortgage
Harder to refinance your first mortgage
Interest is paid on the entire loan amount, compared to an equity line of credit
In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:
Purchase your home with no down payment.
Piggyback loans: 80-10-10 or 80-15-5. Avoid PMI payments.
New Construction Loans.
Debt consolidation programs.
Home Improvement loans also known as "re-hab loans"
You may qualify even if you've been turned down before with our innovative and cutting edge programs!
Merimack Mortgage Co. Inc. - 660 Forest Ave, Portland, ME 04103 U.S.A.Office: (207) 842-6854 Ext. 227 Fax: (207) 842-6858 Cell: (207) 450-6336 Toll Free: 1-800-600-3007 Ext. 227 Contact Us Page Fast Web Design by Advent Digital
We lend in the following states: Maine, MA, NH, RI, VT
ME License #SLB3932

http://www.mainepurchase.com/loan_programs.html