Because each homebuyer’s wants and needs are different, it is important to make a plan and set some goals so we may help tailor a program that is right for you.

Ask yourself these questions:

• How long do I plan to stay in this home?

• What are my future financial goals, plans for retirement, college fund for the children, do we want to remodel, purchase the property as a future rental, etc?

• The average homeowner will spend approximately 5 years in their home. Does it make sense to be paying a higher interest rate for a 30 year fixed loan? Maybe a 5 year ARM would be the better choice.

Below are some mortgage loan programs you may want to consider, feel free to contact us and we will be happy to go over your mortgage options. We offer a vast array of products and by no means does this represent a complete list. Please read over this information so you become familiar with some of the programs and you will be better able to make an informed decision.

Conventional Loan Products

Conventional loan products conform to the criteria set by Fannie Mae and Freddie Mac. The maximum loan amount for 2006 is $417,000 for a single-family home and higher loan limits for multi-family dwellings.

Loan programs

• 15, 20, 30 and 40 year fixed rate loans  – These programs offer a  fixed interest rate over the life of the loan and are a great option if you plan on stay in your home more than 10 years.

• 1,3,5,7 and 10 year ARM (Adjustable Rate Mortgage) - The interest rate with ARM programs adjusts after the fixed 1,3,5,7, 10 year period, and then adjust every 6 months or 12 months depending on the program. These loans usually have payment adjustment caps, the interest rate can only raise/lower a fixed amount at each adjustment (usually 2 percent) and there is a cap on the interest rate for the life of the loan (usually 5-6 percent). The interest rate and payment are usually lower on these products for the initial fixed period. These are great products to consider if you plan to stay in your home 10 years or less.

Jumbo Loan Products

This type of loan is for borrowers who are purchasing a home over the $417,000 conforming loan amount. The interest rate on these products are a little higher than conforming rate products. ARM (Adjustable Rates Mortgages), fixed rates, and are also available.

First Time Homebuyers

First Time Homebuyer is a person who has never owner a home or someone who hasn’t owned a home in the last 2 years. These mortgage programs are offered to first timer’s to help them get started on the road to homeownership. Often they have a lower down payment requirement. For more information about homeownership http://www.freddiemac.com

http://www.irs.gov/pub/irs-pdf/p530.pdf

Government Loans:

FHA

The Federal Housing Administration (FHA) insures the loan, so your lender can offer you a better deal. FHA loans have lower down payment requirements and are easier to qualify for than conventional loans. No credit and credit blemishes are usually accepted. FHA offers Fixed Rates as well as ARMs. www.hud.gov/buying/loans.cfm

VA

The U.S. Department of Veteran Affairs sponsors VA loans, and they guarantee loans for eligible veterans, active-duty personnel, and surviving spouses. These loans offer competitive rates, lower or no down payments, and minimum income requirement. VA offers an ARM Product as well as Fixed Rate products. For more information about VA loans www.homeloans.va.gov

Home Equity Line of Credit

 With a Home Equity Line of Credit, a homeowner is given access to funds based on the equity in their home. The money is withdrawn as needed and the homeowner pays interest only on the funds borrowed. This interest maybe be tax deductible, contact your tax advisor for details.

*Remember, we offer many more mortgage products. Give us a call and we will be happy to help you with your mortgage needs.