LSR Lending is committed to bringing its customers
innovative and flexible loan options to meet their needs. We work
with a large network of lenders to find loans for almost
every situation.
With so many loan programs and home equity loans available, it is easy to get confused and make the wrong choice. To help you make the right decision an overview of the various programs which are available to you is located below as well as guidelines for determining whether this loan is right for you.
30 Year Fixed Rate Mortgage
This is the most popular and conventional loan program. Your monthly payment is calculated based on the initial interest rate, and never changes for the 30 year life of the loan. The 30 Year Fixed Rate Mortgage is considered the most conservative because there is no risk that changing market conditions will effect your monthly payment.
This loan is probably right for you if.....
you don't plan to move or refinance for at least 10 years & expect interest rates to increase over this period
you just feel uncomfortable making an interest-rate bet at this time
you don't expect your income to increase significantly over the next several years
20 Year Fixed Rate Mortgage
Like the 30 Year Fixed Rate Mortgage, this program guarantees that your payment never changes over the life of your loan. Since you are committing to pay off your loan over a shorter period, however, your monthly payment will be significantly higher than for the previous program.
This loan is right for you if......
you are interested in owning your home without debt and therefore wish to pay off your loan more quickly
you expect to stay in this home in your retirement and you will be retiring in fewer than 30 years, and do not wish to start retirement with any debt.
15 Year Fixed Rate Mortgage
The most aggressive of the Fixed Rate Mortgage options. This loan is paid off in only 15 years, resulting in a much higher monthly payment. Sometimes referred to as the "Yuppie Mortgage", this program is for individuals who can afford the higher monthly payment and are willing to pay more over a shorter period of time with the goal of owning the home without debt as soon as possible.
This loan is for you if......
you are very aggressive about owning your home sooner or are close to retirement and wish to remain in your home and not start retirement with any significant debt.
3/1 Adjustable Rate Mortgage
This 30 year loan offers a fixed interest rate for the first three years and then turns into a 1 Year Adjustable Rate Mortgage for the remaining 27 years of the loan. This loan has become quite popular in the last two years and should be considered by all those seeking to minimize monthly payments while accepting a certain amount of risk.
This loan is right for you if......
you wish to maximize the amount of loan you qualify for and expect to remain in this home for more than 3 years. This loan is generally the least expensive way to fix your monthly payment for the first three years of your loan. After that, the loan behaves like a 1 Year Adjustable Rate Mortgage with all of its risks and rewards.
Do not take this loan if you are concerned that your income in three years may not cover your monthly payment after your first adjustment.
5/1 Adjustable Rate Mortgage
This 30 year loan offers a fixed interest rate for the first five years and then turns into a 1 Year Adjustable Rate Mortgage for the remaining 25 years of the loan. This loan has a longer initial fixed period than the 3/1 Adjustable Rate Mortgage.
This loan is right for you if......
you fit the profile for the 3/1 Adjustable Rate Mortgage but wish to trade off a higher initial rate for the security of a longer initial fixed period.
If you are certain you will only remain in this home for less than the initial 5 years, consider the 5/25 Balloon Mortgage instead.
7/1 Adjustable Rate Mortgage
This 30 year loan offers a fixed interest rate for the first seven years and then turns into a 1 Year Adjustable Rate Mortgage for the remaining 23 years of the loan.
This loan is right for you if......
you plan to remain in this home at least the initial seven years, but consider it likely that you may wish to remain longer
If you are certain you will only remain in this home for less than the initial seven years, consider the 7/23 Balloon Mortgage instead.
10/1 Adjustable Rate Mortgage
This 30 year loan offers a fixed interest rate for the first ten years and then turns into a 1 Year Adjustable Rate Mortgage for the remaining 20 years of the loan.
This loan is right for you if......
you plan to remain in this home at least the initial ten years, but consider it likely that you may wish to remain longer
you wish to have a long period of fixed monthly payments, but still wish to enjoy some savings over the 30 Year Fixed Rate Mortgage.
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