Jumbo

JUMBO 30 YEAR FIXED

• Best Choice If:
  1. You plan on staying in the home long-term.
  2. You need your monthly payments to remain fixed over the life of the loan.
• Advantages:
  1. Level principal and interest payments for the full term of the loan.
  2. Allows for higher loan amount qualification and enhanced buying power.
  3. No risk that changing market conditions will increase your monthly payments.
• Disadvantages:
  1. Benefits of the fixed rate are not realized until after the 10th year. (10/1 ARM is a better option if loan is paid-off within 10 years.)

JUMBO 15 YEAR FIXED

• Best Choice If:

o    You plan on staying in the home long-term.

o    You need your monthly payments to remain fixed over the life of the loan.

o    You would like to pay-off the loan balance quickly.

• Advantages:

o    Level principal and interest payments for the full term of the loan.

o    No risk that changing market conditions will increase your monthly payments.

o    The loan balance will decrease more rapidly than a 30 Year mortgage.

• Disadvantages:

o    Monthly payments are higher than a 30-year mortgage

JUMBO 3/1 YEAR ARM

• Best Choice If:

o    You want a loan with:

o    Higher available loan amounts

o    Very low initial payments

o    Some of the benefits of both a Fixed and ARM product.

o    Payments that adjust up and down with market movements.

• Advantages:

o    Interest rate does not adjust for the first 3 years. Adjusts annually thereafter

o    Allows for higher loan amount qualification and enhanced buying power.

• Disadvantages:

o    Jumbo product interest rates are typically higher than standard ARM products.

o    Interest rate can rise above the current fixed rates over time.