A 15-year fixed-rate mortgage offers a lower interest rate than a 30-year or a 20-year mortgage and will save you a significant amount of interest over the life of a loan. You will build up equity in your home quickly, which can allow you to move to a more expensive home sooner. If you are nearing retirement, this shorter-term allows you to own your home sooner. 15 years fixed interest rate is suitable for people seeking to pay the loan quickly and thus prefer 15 years fixed rate as compared to a variable rate or 30 years fixed. The term 15 year fixed loan program is short as compared to 30 years fixed. Thus, monthly payments are higher but the loan amount pays off quickly and you pay less total interest amount over the life of the loan.

Advantages:

• The fifteen-year loan pays off quickly and you pay less total interest amount over the loan period.

• A loan can be refinanced if the rate drops.

Disadvantages:

• Monthly payments are considerably high due to 15 years period condition.

• Monthly payment does not change if interest drop.

30 year fixed interest rate is one of the most desirable loan programs in the nation, most people seek the low monthly payments and prefer 30 years fixed rate as compared to a variable rate. The interest rates are volatile and always move up and down briskly, and therefore the majority of people like to stay with a constant fixed interest rate. The term of a 30-year loan program is long and consequently, you pay more interest over the life of the loan. The 30 year fixed loan financing is recommended for borrowers who intend to stay in their house for a long period of time. It is indeed the most common and easiest fixed-rate loan to qualify for. Its longer-term gives you the best chance to keep monthly payments low and use the extra cash for other purposes.

• Monthly payments and Interest rates are fixed for 30 years despite the interest rate fluctuations.

• 30 year fixed loan can be refinanced if the interest rates drop.

• Considerably high-interest rate because of the long term of 30 years and therefore you pay more interest amount.

• Mortgage payments do not drop if the interest rate drops

30 Years Fixed Loan Program is one of the main services offered by us. We offer a wide range of financial loan products to assist you.

Balloon mortgage is most commonly used for a commercial mortgage. Balloon mortgage payments does not fully amortize over the term of the note, the last payment includes all remaining interest and unpaid principal, and often comes to quite a large total. This introduces a certain amount of risk, but it can be quite beneficial if a borrower is anticipating immediate cash flow for his/her business venture. Balloon mortgage loans are a good product for people looking for a lower interest rate.

Adjustable-rate mortgages are sometimes confused with balloon payment mortgages. The difference is that a balloon payment may require refinancing or repayment at the end of the period (if you are unable to repay the entire balance); some adjustable rate mortgages do not need to be refinanced, and the interest rate is automatically adjusted at the end of the applicable period. Balloon payments are often prepackaged into what are called "two-step mortgages." In this type of mortgage, the balloon payment is rolled into a new or continuing amortized mortgage at the prevailing market rates.

Balloon mortgages are most popular with 2nd mortgage notes, such as a 30 year amortized note due in 15 years (30/15). The monthly payment with a 30-year amortization will be lower than if the property is financed with a 15-year mortgage. The interest rate for the five or seven-year period may be lower than the rate for a 30-year fixed-rate mortgage. The goal with a balloon payment mortgage is to obtain a low, fixed monthly payment with the plan of selling the property at a profit before the balloon payment is due. You can also refinance your balloon mortgage prior to its maturity and obtain a new fully amortizing loan.

An interest-only loan is a mortgage loan in which, the borrower pays only the interest on the principal balance, for a set period of time. The principal balance remains unchanged during the set term. At the end of the interest-only term, the borrower has many options, such as:

• may enter an interest-only mortgage

• pay the principal

• convert the loan to a principal and interest payment (or amortized) loan

Interest-only commercial mortgages can play an important role in helping a business trying to get off the ground. When finding cash flow for the investment is difficult, interest-only mortgage can be a very good option. On the other side interest-only loans represent a somewhat higher risk for lenders, so expect a slightly higher interest rate. Also considering today's fluctuating real estate market, the borrower may end up paying more than the actual value of the property when the interest-only commercial mortgage loan is finally paid off.

A fixed-rate mortgage (FRM) offers a monthly payment that does not change over time and result in a portion of the loan's principal being paid down every month. Typically, the shorter the loan period, the more attractive the interest rate will be. It was the first mortgage loan that was fully amortized (fully paid at the end of the loan) precluding successive loans, and had fixed interest rates and payments. Fixed-rate fully amortizing loans have two discrete features:

1.- The interest rate remains fixed for the life of the loan.

2.- Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term.

The most common terms are 15-year and 30-year mortgages, but shorter terms such as 10 years are available as well. 15 or 30-years are the most popular fixed-rate mortgage loan terms. A 30-year amortizing loan typically has lower payments than a 15-year loan, but a slightly higher interest rate than a 15-year loan.

Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. During the early amortization period, a large percentage of the monthly payment is used for paying the interest. As the mortgage is paid down, more of the monthly payment is applied toward the principal.

Adjustable-Rate Mortgage (ARM) also called a variable-rate mortgage is a mortgage loan where payments will fluctuate over time. The initial interest rate will be lower than that of a fixed-rate mortgage; however, changes in the market could result in increased interest rates, which will ultimately affect the monthly payments.

For borrowers whose income may go up, an adjustable-rate mortgage might be the best option because of early lower payments. Some loans are fixed for a certain period of time, and then they turn into adjustable-rate loans. For example, a 3-1 ARM loan offers a fixed-rate for the first three years, adjusting once a year thereafter. A 5-1 ARM loan offers a fixed-rate for the first five years, adjusting yearly thereafter.

In ARM, the interest rate on the note periodically adjusted based on an index that reflects the cost to the lender of borrowing on the credit markets. Among the most common indexes are:

• The 11th District Cost of Funds Index

• The Treasury Bill Index

• London Interbank Offered Rate (LIBOR) based indexes

• Constant Maturity Treasury (CMT)

For the borrower, adjustable-rate mortgages may be less expensive, but at the price of bearing higher risk. Many ARMs have "teaser periods", which are relatively short initial fixed-rate periods (typically one month to one year) when the ARM bears an interest rate that is substantially below the "fully indexed" rate. The teaser period may induce some borrowers to view an ARM as more of a bargain than it really represents. A low teaser rate predisposes an ARM to sustain above-average payment increases.