• 30 year fixed
• 20 year fixed
• 15 year fixed

• Monthly payments are fixed over the life of the loan
• Interest rate does not change
• Protected if rates go up

• Higher interest rate
• Higher mortgage payments
• Rate does not drop if interest rates improve

• 3, 5, 7, & 10/1
• 1 year ARM
• 1 or 6 mo ARM

• Lower initial monthly payment
• Rates and payments may go down if rates improve
• May qualify for higher loan amounts

• More risk
• Payments may change over time
• Potential for higher payments if rates increase

Interest Only

• Higher rates
• Principal loan balance will not decrease during the interest only payment period
• Payment will be higher for the remaining term

• Don't need to verify income
• Faster approval
• Good for borrowers who may not qualify with a full income documentation program

• Up to 4 flexible payment options
• Lowest possible payment
• Good for borrowers with fluctuating income or investors who want to increase cash flow

• Can result in negative amortization
• Rates and payments can change
• Loan will be recast after 5 years, resulting in higher payments

• Easy access to your equity
• No closing cost option may be available
• A good source for paying for home improvements

• Rates can change. The maximum interest rate can be relatively high
• Payments can change
• Principal won't be reduced if interest only payments are made

• Higher interest rates compared to first mortgage
• Interest is paid on the entire loan amount, compared to an equity line of credit

• Enables you to buy a home now rather than wait to save up
• Can finance total in two loans to avoid PMI
• Can use money saved for furniture, upgrades, etc rather than tying it up in a down payment

• Higher rates
• Larger payments
• May be more difficult to qualify

• Buy the home now while you are working and retire in it later
• Build wealth with additional equity
• Similar terms to your primary residence loan

• Can be more difficult to qualify
• Can require a higher  down payment

• Take cash out now to finance improvements, buy inventory, expand business, etc.
• Stated income/stated asset program - less hassle with less paperwork
• Minimal cost

• Wait to apply after January 11, 2008 and you will miss the opportunity to have the 1% closing fee waived!