Which loan is right for me?

Years you plan to stay in the house Recommended program 1-3 Adjustible Rate Mortgage 3-5 Adjustible Rate Mortgage 5-7 Adjustible Rate Mortgage 7-10 Adjustible Rate Mortgage or Fixed Rate Mortgage 10+ Fixed Rate Mortgage

Loan Programs                   Advantages                 Disadvantages Fixed Rate Mortgages 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 Higher interest rate Higher mortgage payments Rate does not drop if interest rates improve Adjustable Rate Mortgages 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 increase over time Potential for high payments if rates go up Balloon Mortgages 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. 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 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   No closing costs Less money required to close 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 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 high. Payments can change Harder to refinance your first mortgage *Consult your tax advisor regarding the deductibility of interest Home Equity Fixed Loan   Fixed payments Interest may be tax deductible * Higher interest rates than on 1st mortgages Harder to refinance your first mortgage *Consult your tax advisor regarding the deductibility of interest

Besides our standard loan programs, we also have a large number of unique programs to serve your needs: Purchase a house with grant money and little downDSELP Piggyback loans - 80-10-10.   Debt consolidation programs Home Improvement loans Investor Financing Manufactured & Modular Home Loans Qualify even if you may have been turned down before!

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David Fitzell

Branch Manager / Loan Officer 

 

2300 York Road

Suite 213

Lutherville Timonium, MD 21093
Office Phone: (410) 561-7515 Ext 138

Fax: (410) 561-8145

Toll Free Phone: (800) 840-5269 Ext 138

Cell Phone: (443) 829-7595
Cell Phone: (301) 573-7500

Email: dfitzell@carrolltonbank.com

 

We lend in the following states: MD, DE, PA, VA, WV

 

The information provided in this website may not apply to each individual mortgage loan situation.

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Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

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