银行如何确定利率
Just like selecting a wine, there isn't a right answer when selecting a loan program but you may feel more comfortable with one choice over another.
1st ask yourself how long you plan to live in the home or keep the loan:
Years you plan
to keep the house
1-3
3-5
5-7
7 - 10
10+
Recommended
Program
3/1 ARM
5/1 ARM
7/1 ARM
10/1 ARM, 30 Yr Fixed or 15 Yr Fixed
10+ 30 Yr Fixed or 15 Yr Fixed
Benefits and Disadvantages of Fixed Rate Programs
Loan Programs
30 Year Fixed
20 Year Fixed
15 Year Fixed
10 Year Fixed
Advantages
-
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
Disadvantages
-
Higher interest rate
-
Higher mortgage payments
-
Rate does not drop if interest rates improve
Benefits and Disadvantages of Adjustable Rate Programs
Loan Programs
10/1 ARM
7/1 ARM
5/1 ARM
3/1 ARM
1 Year ARM
6 Month ARM
1 Month ARM
Advantages
-
Lower initial monthly payment
-
Lower payment over a shorter period of time
-
Rates and payments may go down if rates improve
-
May qualify for higher loan amounts
Disadvantages
-
More risk
-
Payments may change over time
-
Potential for high payments if rates go up
Benefits and Disadvantages of Balloon Mortgages
Loan Programs
30/7
30/5
Advantages
-
Lower initial monthly payment
-
Lower payment over a shorter period of time
-
Many balloon mortgages offer the option to convert to a new loan after the initial term.
Disadvantages
-
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 Buyer Programs
Below Market Rate Homes
1st Time Buyer Loan Programs
-
Zero or low down payment
-
Easier to qualify
-
Sometimes you may get lower rates
Advantages
-
Zero or low down payment
-
Easier to qualify
-
Sometimes you may get lower rates
-
Purchase price can be substantially lower than market price
Disadvantages
-
May be subject to income and family size limitations
-
Some programs which have government subsidies may have a penalty if you sell the house too early.
-
Restrictions on resale price
-
Restrictions on whom the property can be sold to