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30
Year Fixed
• 15 Year Fixed
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| • 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
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•
Higher interest rate
• Higher mortgage payments
• Rate does not drop if interest
rates improve
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• 1
Year Arm
• 3/1 Arm
• 5/1 Arm
• 7/1 Arm
• 10/1 Arm
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• Lower
initial monthly payment
• Lower payment over shorter period
of time
• Rates and payments may go down
if rates improve
• May qualify for higher loan amounts
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• More
risk
• Payments may change over time
• Potential for high payments if
rates go up
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• Tax
deduction
• Can borrow up to 100% equity
in home
• Rates lower than credit cards
• Can be used for debt consolidation,
home improvements, school tuition, etc.
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• 2nd
lien on home
• Higher interest rate than 1st
mortgage
• Rate may fluctuate depending
on equity line vs. equity loan
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