Which Is The Right Loan? - First Allied Mortgage - (925) 943-2929

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First Allied Mortgage

			A California Corporation

		Which Loan Should You Choose?

	For most, the purchase of a home will be one of the most important decisions of their lives. Financing this investment will usually involve a mortgage, and choosing the right mortgage can be an extremely confusing process. Typically, your home will cost 25% to 40% of your gross income, therefore, a little homework first, together with the help of a qualified mortgage professional, can ensure that the mortgage you take on will be the right one for you. All of the programs below are amortized over thirty years (most common, and excludes many alternatives, such as the 20 or 15 year fixed) and are just a few of the many solutions available to you when you put your trust in *First Allied Mortgage.*

Program	Description	Ask Yourself
30 YR FIXED RATE	Interest rate and monthly payment remain unchanged throughout the term.	• Plan to live in home 10 years or more? • Like a steady payment plan ~ No surprises?
10/1 YEAR ADJUSTABLE RATE	Interest rate and monthly payment remain same until 11th year, subject to change every year thereafter.	• Plan to live in home 10 years or more but like steady payment plan until income increases? • Plan to move within 10 years, but want the loan to remain in force in case you change your mind?
7/23 (2-STEP) OR ‘30’ DUE IN 7	Interest rate and monthly payment remain same for 7 yrs. On the 8th year, rate adjusted to prevailing rate, payments remain same for balance of term.	• Plan to live in home 10 years but can take one payment increase after 7 years? • Plan to move within 7 years, but want loan to remain in force just in case you change your mind?
7/1 YEAR ADJUSTABLE RATE	Interest rate and monthly payment remain same for 7 yrs. Starting 8th year, interest rate adjustable every year for 23 yrs.	• Plan to live in home 7 years or more but like steady payment until income increases? • Plan to move within 7 years, but want loan to remain in force in case you change your mind?
7 YEAR BALLOON MORTGAGE	Interest rate and monthly payment remain the same for 7 years, at which time loan is due in full.	• Plan to live in home 7 years or more and willing to refinance at then prevailing rates? • Plan to move within 7 years and like payment stability while living there?
5/25 (2-STEP OR ‘30’ DUE IN 5	Interest rate and monthly payment remain same for 5 years. Conversion option in the 6th year Interest rate adjusted to prevailing rate. Adjusted payment remains same thereafter.	• Plan to live in home 5 years or more, and willing to accept one payment increase? • Plan to move within 5 years, but want loan to remain in force just in case you change your mind?
5/5 AND 5/1 YEAR ADJUSTABLE RATE	Interest rate and monthly payment remain same for 5 years. Starting 6th year interest rate adjusted every 5 years (5/5 ARM) or one year (5/1 ARM).	• Plan to live in home 5 years or more, exchanging initial rate stability for adjustments later? • Plan to move within 5 years, but want loan to remain in force just in case?
5 YEAR BALLOON	Interest rate and monthly payment remain same for 5 years. After 5 years, loan is due in full.	• Plan to live in home 5 years or more, but willing to refinance then at the prevailing rates? • Plan to move within 5 years, and like payment stability while living there?
3/3 AND 3/1 YEAR ADJUSTABLE RATE	Interest rate and monthly payment remain the same for 3 years. On the 4th year, interest rate adjusted every 3 years (3/3 ARM) or 1 year (3/1 ARM).	• Plan to live in home 3 years or more, accept multiple adjustments later in exchange for low initial rate? • Plan to move within 3 years, but want loan to remain in force just in case?
1 YEAR ADJUSTABLE RATE	Interest rate adjustable every year, monthly payments fluctuate for entire 30 year term.	• Looking for lowest rate possible, but willing to accept yearly changes after first year? • Cannot qualify for higher rate program?


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