TJH Mortgage Brokers, LLC                 Call Now: 251-609-3770 -  Real Estate Loans -  Sales - Property Management - Insurance
TJH Mortgage Brokers, LLC offers FHA, Conventional, USDA, VA, HECM (reverse mortgages), as well as equity lines of credit. The following is a breakdown of the different programs that borrowers can choose from. This information will help assist you with finding the right program to meet your needs.

Products
Which loan is right for you?
How many years you plan to stay in home?

Years          Best program
1-3            3/1 ARM, 1 year ARM or 6 month ARM
3-5            5/1 ARM
5-7            7/1 ARM
7-10          10/1 ARM
10+           30 year fixed or 15 year fixed

Fixed Rate Mortgages: 30 Year fixed and 15 Year fixed        
Pros  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
Cons
  • Higher interest rate
  • Higher mortgage payments
  • Rate does not drop if interest rates improve
Adjustable Rate Mortgages 10/1 ARM, 7/1 ARM, 3/1 ARM, 1 year ARM, 6 month ARM, 1 month  ARM 
Pros
  • Lower initial monthly payment
  • Lower payment over a shorter period time
  • Rates and payments may go down if rates improve
  • May qualify for higher loan amounts
Cons
  • More risk
  • Payments may change over time
  • Potential for high payments if rates go up
  •  
Balloon Mortgages 7 year, 5 year
Pros
  • Lower initial monthly payment
  • Lower payment over a shorter period of time
  • Many balloon mortgages offer the option to convert a new loan after the initial term
Cons
  • Risk of rates being higher at the end of the initial fixed period
  • Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option
 First Time Buyers
  • Lower Down payment
  • Easier to qualify
  • Sometimes you may get lower rates
  • May be subject to income and property value limitations
  • Some programs which have government subsidies may have a recapture tax if you sell the house too early
No point, No fee Programs 
Pros
  • No closing costs
  • Less money required to close
Cons
  • Higher rates
  • Higher payments
 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
Cons
  • Higher rates
  • Terms may not be as favorable
  • Harder to get long term fixed loans
  • Loans may have prepayment penalties
 Home EquityLine of Credit (Pros)
  • You only borrow what you need
  • Pay interest only on what you borrow
  • Flexible access to funds
  • Interest may be tax deductible
Cons
  • Rates can change, max rates are normally high
  • Payments can change
  • Harder to refinance your first mortgage
 Home Equity Fixed Loan (Pros)
  • Fixed payments
  • Interest may be tax deductible
Cons
  • Higher interest rates than on 1st mortgages
  • Harder to refinance 1st mortgage 
  
TJH Mortgage Brokers, LLC
Website Builder provided by  Vistaprint