• 30 year fixed
• 20 year fixed
• 15 year fixed
• 10 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

• 10/1 ARM
• 7/1 ARM
• 5/1 ARM
• 3/1 ARM
• 1 year 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

First Time Buyer Programs

VHFA

NHHFA

MSHA

• 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

• 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

•  Lower monthly payments
• Qualify for a higher loan amount
• Qualify at the interest only 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