Loan Program Advantages Disadvantages
| Fixed-rate mortgages |
- Predictable monthly payments
- Less risk if market conditions cause rates to rise
- Rate does not change
|
- You pay more in interest
- Higher interest rate
- Unable to take advantage of lower interest costs if market
changes to lower rates
|
| Adjustable rate mortgages |
- Flexibility
- Lower initial monthly payment
- You pay less for short term ownership
- May be easier to qualify for higher loan amounts
|
- More risk
- Inability to predict future housing costs
- Potential higher payments (at max. interest rate)
|
| Stated income mortgages |
- Don’t need to verify income
|
- Rates can be higher
- Need a lower LTV
|
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