Loan Program Comparison
Which Loan Is right for Me? Mortgages Made Easy!
At Summit Lending Services, we do your mortgage shopping for you.
| Years you plan to stay in the home |
Recommended program |
| 1-3 years |
3/1 ARM, 1 year ARM or 6 month ARM |
| 3-5 years |
5/1 ARM |
| 5-7 years |
7/1 ARM |
| 7-10 years |
10/1 ARM, 30 year fixed or 15 year fixed |
| 10+ years |
30 year fixed or 15 year fixed |
| Loan Program |
Advantages |
Disadvantages |
Fixed Rate Mortgages
- 30 year fixed
- 15 year fixed
|
- 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 rate
- Higher mortgage payments
- 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
- 1 year ARM
- 6 month ARM
- 1 month 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
|
- 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 down payment
|
| Loan Program |
Advantages |
Disadvantages |
| Interest
Only Programs |
- You have several payment options
- Lower monthly payments
- Qualify for a higher loan amount
- Qualify at the interest only payment
- Option to pay the full normal payment
- Interest only payments for up to ten years
|
- Higher rates
- Principal loan balance will not decrease during the interest
only payment period
- Payment will be higher for the remaining term
|
| Loan Program |
Advantages |
Disadvantages |
| No point, No fee Programs |
- No out-of-pocket loan costs at closing
- Closing costs are paid from the lender rebate
- Less money required to close
- Refinance without increasing your loan amount
|
- Higher rates
- Higher payments
- Some lenders may have a short payoff penalty which is usually
charged to the loan broker, but may be passed on to you
- Some require a prepayment penalty for the first one to five
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
|
- Higher rates
- Terms may not be as favorable
- 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.
-
Debt consolidation programs.
-
Home Improvement loans.
-
You may qualify even if you've been turned down before!
|
Summit Lending Services
28822 Via Leona, Suite B
San Juan Capistrano, CA 92675
Telephone: 1-800-899-3534
Fax: (949) 248-3119
Summit Lending Services is America's Number One Nationwide mortgage company qualified in 43 states providing Wholesale Discounted Rates for Refinance, Purchase, First-Time Home Buyer, Debt Consolidation, Home Equity, Construction, Commercial, Bankruptcy, Foreclosure, Private Money, Home Improvement, and Land Loans.
No Credit, Bad Credit? No Problem!
We have experienced specialists on hand to help you even if you currently have no credit, no job, no proof of income, sub 500 credit scores, foreclosure, one day out of bankruptcy, notice of default, or have recently been turned down by another company for any other reason.
Call us today at 1-800-899-3534 so we can put you at ease. Summit Lending Services Is Licensed in 43 States To Better Serve You.
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Loan Programs 
