Mortgage Loan Choices from Pat Thornberg, Realtor

Choices for your Mortgage Loan
for Residential Property - Residences, Second Homes and Investment Uses

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Mortgage Loan Programs for Maryland, D.C. and Virginia - Residential Property

NEW Loan Limits for 2006: Conventional Loans can be up to $417,000. Jumbo Loans are above $ 417,000. loan amounts.(one unit) More details about the Conforming Loan Limits Increase from the National Association of Home Builders.

ASK ABOUT OUR LOAN PROGRAMS for STATED INCOME and 100% FINANCING for PURCHASES!

Which mortgage loan would be your best choice?

Years you plan to stay in the house	Recommended Loan programs
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, 30 year fixed or 15 year fixed
10 or more years	30 year fixed or 15 year fixed (some lenders offer 20 year fixed)

Loan Programs	Advantages	Disadvantages
...
Fixed Rate Mortgages
30 year fixed 15 year fixed	Monthly payments are fixed over the life of the loan Interest rate does not change Protected rate if rates go up Can refinance if rates go down Full Doc or Limited Doc programs	Higher interest rate Higher mortgage payments Rate does not drop if interest rates improve
Adjustable Rate Mortgages - "ARMs"
10/1 ARM 7/1 ARM 3/1 ARM 1 year ARM 6 month ARM 1 month ARM	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	More risk Payments may change over time Potential for high payments if rates go up Margins and Caps vary for all programs Read all Disclosures for loan terms/rates
Balloon Mortgages
5 year 7 year	Lower initial monthly payment Lower payment over a shorter period of time Some balloon mortgages offer the option to convert to a new loan after the initial term	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
	Lower down payment Easier to qualify Sometimes you may get lower rate Lenders may accept lower Credit scores	May be subject to income and property value limitations Some programs with government subsidies may have a recapture tax if you sell the house too early
...
Stated Income Programs
	No need to verify income Faster approval -less documents to show Low Doc requirements (need assets)	Higher rates Higher down payment - lower LTV % Must verify Cash Assets
No point and/or No Closing Costs Programs - varies depending on Lender
	No closing costs, or lower costs Less money required to close	Higher rates Higher payments Loan amount usually has to be > $350,000
Credit Issues Programs - also called Subprime Programs
	Potential for improving credit if you pay your mortgage on time If used for debt consolidation, may be able to reduce your monthly debt payment	Higher rates Terms may not be as favorable Harder to get long term fixed loans Loans may have prepayment penalties
Home Equity Line of Credit
	You only borrow what you need Pay interest only on what you borrow Flexible access to funds Interest may be tax deductible	Rates can change. The maximum interest rate is normally higher Payments can change Harder to refinance your first mortgage
Home Equity Fixed Term Loan
	Fixed payments Interest may be tax deductible	Higher interest rates than on 1^st mortgages Harder to refinance your first mortgage

Besides these typical loan programs, we also have a selection of alternative programs to serve your financial needs:

Purchase a home with LOW downpayments
Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with only 5% or 10% down.
Debt consolidation programs - many terms possible
Home Improvement loans
Your qualifications and application reviewed and best loan programs compared

Contact me with any questions or to set up a Free Consultation about your new Mortgage.
Email Pat at   calverton3@yahoo.com
Email   Sharon Jones at sharonj@erols.com
Sharon does my loan processing and can send you the Loan Application Documents
Home office: 301-572-4256   Calverton, MD
Fax: 301-572-7796 Cell: 301-996-6941
To PRINT 1003 -2006 Loan Application CLICK HERE -print on 8 1/2 x 11 size paper.

NOTE - To PRINT this page -select Print Preview and reduce to 80% to fit this table on the page.

This website offers CALCULATORS for many Financial events including Mortgage Payments - Try some Calculators now!
http://www.financenter.com/consumertools/calculators/
Visit our Website for more details and future Seminar Dates - www.olneymd.com/pat.htm

** Investment property or Second Home Purchases may have LTV (loan to value) limits- ask us for details.

Serving Maryland, Virginia and DC (for loans only)

Specializing in Montgomery, Prince George's and Howard Counties in Maryland