With all the mortgage options available today, it can be difficult to choose which plan is best for you. We hope you find this table helpful in choosing the right mortgage for you.
PROGRAM LOAN DESCRIPTION FOR INDIVIDUALS WHO
Standard Fixed Rate Mortgage of 30, 20, 15, 10 years

• During the entire term of the loan, interest rate and payment stay the same

• Plan on living in home for more than ten years
• Seek stability in their monthly payments

USDA RURAL HOUSING LOANS

" 100% Financing 6% seller help toward closing

- First-time Home Buyer - Primary Residence

7/1 Year Adjustable Rate Mortgage

• For seven years interest rate and payment remain the same
• After the first seven years, the interest rate is adjusted every year
• For the remainder of the term the payment is subject to change


• Plan on living in home for more than seven years
• Seek stability in their monthly payments but can accept changes later
• Plan on moving within seven years
• Would like to keep loan if plans change


7/23 (2-Step) or "30 due in 7" Mortgage

• For seven years interest rate and payment remain the same
• Conversion Option - The eighth year the interest rate is adjusted to mirror current interest rates, the resulting payment will remain constant throughout the remainder of the loan


• Plan on living in home for more than ten years
• Able to handle one payment adjustment
• Plan on moving within seven years
• Would like to keep loan if plans change


7 Year Balloon Mortgage

• For seven years interest rate and payment remain the same
• The loan is due in full at the end of seven years
• The borrower has to refinance into a new loan using the current interest rates


• Plan on living in home for more than seven years
• Willing to refinance at current market rates
• Plan on moving within seven years
• Like stability in payments


5/5 and 5/1 Year Adjustable Rate Mortgages

• For five years interest rate and payment remain the same
• Beginning in the sixth year, the interest rate is adjusted every five years (for 5/5 ARM) and every year (for 5/1 ARM)


• Plan on living in home for more than five years
• Seek stability in their monthly payments but can accept changes later
• Plan on moving within five years
• Would like to keep loan if plans change


5/25 (2-Step) or "30 due in 5" Mortgage

• For five years interest rate and payment remain the same.
• Conversion Option - The sixth year the interest rate is adjusted to mirror current interest rates, the resulting payment will remain constant throughout the remainder of the loan.


• Plan on living in home for more than five years
• Able to handle one payment adjustment
• Plan on moving within five years
• Would like to keep loan if plans change


5 Year Balloon Mortgage

• For five years interest rate and payment remain the same.
• The loan is due in full at the end of five years
• The borrower has to refinance into a new loan using the current interest rates


• Plan on living in home for more than five years
• Willing to refinance at current market rates
• Plan on moving within five years
• Like stability in payments


3/3 and 3/1 Year Adjustable Rate Mortgages

• For three years interest rate and payment remain the same
• 8 Beginning in the fourth year, the interest rate is adjusted every three years (for 313 ARM) and every year (for 311 ARM)


• Plan on living in home for more than three years
• Seek stability in their monthly payments but can accept changes later
• Plan on moving within three years
• Would like to keep loan if plans change.


1 Year Adjustable Rate Mortgages

• Interest rate changes every year making monthly payments subject to change every year for the entire 30 year term of the loan

• Take advantage of lowest possible interest rate
• Willing to accept changes in payments yearly
• Unable to qualify for higher rate programs