Which loans fit me?

Shopping for a loan can be difficult as each borrower’s situation is different. Should you take an adjustable or a fixed rate loan? How do points and fees play into your loan process? Should you take out a home equity line of credit? With so many programs available, it may be hard to decide which program is best for you. I can help make the best decision for you.

If you plan to stay in the house for: The recommended programs are:

1 – 3 years 3/1, 1 year, 6 or 1 months ARM

3 – 5 years 5/1 ARM

5 – 7 years 7/1 ARM

7 – 10 years 30, 20, 15 or 10 years Fixed or 10/1 ARM

10 years and above 30, 20, 15 or 10 years Fixed

There are some questions to think about if you plan to choose the ARM programs:

• How long do you plan to own this home? If you plan to sell soon, rising interest rates may not pose a problem as to if you plan to own the house for a long time.
• Is your income likely to raise enough to cover higher payments if rates go up?
• Will you be taking on other sizable debts, such as car loan or school tuition in the near future?

Loan Programs	Advantages	Disadvantages
30, 20, 15 or 10 years Fixed	Interest rate & monthly payments are fixed throughout the life of the loan. If rates go up you are protected Can refinance if rates go down	Higher rate and payments Rate does not change if interest rates drop
Adjustable Rate Mortgage (ARM) 10/1, 7/1, 5/1, 3/1 ARM 1 year ARM 6 or 1 month ARM	Lower initial monthly payment hence can apply for higher loan amount Rates and payments may go down if rates improve	Rate is not fixed hence subject to change Monthly payments may change due to changes in rate Probability for high payments if rates goes up
No Point, No Out of Pocket Expenses program - For the No Point/No Out of Pocket expenses loan, we absorb the closing costs, hence you do not pay the costs. But the rate would be higher compared to if you pay the closing costs yourself.	We shoulder the closing costs, hence you do not need to pay the costs. Less money required to close	Higher rates and payments.
Interest Only	Monthly payments are lower as there is no principal Because of lower payment hence can apply for higher loan amount	May have a balloon payment at the end of the term, or may be turn into a 20 year amortized loan at the end of 10 years for a total term of 30 years.
Stated Income Program No Income / No Asset Program	No need to verify income/asset Faster approval	Higher down payment Higher rates and payments
Home Equity Line of Credit	You only borrow what you need Pay interest only on what you borrow Flexible access to funds	Higher rates and payments Harder to refinance the first mortgage

The above programs are our standard programs. We also have a broad array of programs to suit your financial needs, such as:

• Zero / No money down purchase
• First Time Home Buyer
• Non- Resident (no green card) program
• Balloon Mortgages
• Home Improvement
• Hard Money loans
• Debt Consolidation
• Bad Credit / No Credit

If you would like to inquire about a rate and a program, please contact me at 650-799-1798. I will find a loan that fits your financial needs.