Home Loans Comparison Chart


Home Loan Options Loan Defined Advantages
Best Choice if Disadvantages
Traditional
Fixed Rate
Rate does not change. Principle and interest payments remain the same for life of the loan. No risk of changing market conditions increasing your monthly payment. Plan on owning home long-term. Higher total interest paid over the life of the loan compared to a shorter term mortgage loan.
Shorter Term
Fixed Rate
Loan balance will decrease more rapidly than a 30 year mortgage resulting in reduced total interest. Your budget allows for a larger monthly payment. Higher monthly payments than a 30-year mortgage.
Adjustable - Rate
Mortgages (ARMs)
Various terms and options available
Fixed rate for a set period of time after which will adjust annually. Typically a lower initial rate and payment than a traditional 30 year mortgage Low initial payment is desired. Plan on selling home after fixed rate period ends. Interest rate may rise above current fixed rate over time.
SmartBuyer™        
First-time homebuyer program requiring a low down payment with flexible income and credit guidelines. As little as 3% down. No PMI required. Relaxed underwriting guidelines. Recently married, just graduated college or tired of renting. Only available to first-time homebuyers.
HomeReady™
Low down payment mortgage available to first-time and repeat homebuyers. Mortgage insurance is cancellable when home reaches 20% equityif certain terms and conditions/restrictions are met Limited cash for down payment. Program eligibility is limited by income dependent on the location of property.
Jumbo
Larger than usual loan amounts for financing higher priced homes. Ability to finance a higher priced home without an exorbitant down payment or multiple mortgages. Buying a luxury or higher priced home. May require a larger down payment than a conforming loan.