The Mortgage Link
Welcome Bankrate and Zillow Users!

 

        

The Mortgage Link offers a variety of mortgage solutions to achieve your financial goals.  We are able to provide lending coverage on all conventional and government loan programs.  The Mortgage Link is an approved government lender for FHA, VA, and USDA (Rural Development) loan programs.

Need to refinance but upside down on your home?  The Mortgage Link supports Making Home Affordable (also known as HARP), a program created by the Obama Administration to assist troubled homeowners.  We can lend up to 150% of the value of your home to put you into a lower fixed rate loan.

Interested in purchasing a home but do not have a down payment?  The USDA (Rural Development) loan program still allows 100% financing. 

Call or email us with your scenario or questions. 

 

Loan Comparison Chart

 

The Mortgage Link takes the worries out of financing your new home by providing a loan that suits your specific requirements. Whether you’re buying, building, or refinancing, The Mortgage Link has a home loan program that’s just right for you.

 

This chart provides information on the most common mortgage programs.  Please contact The Mortgage Link to determine which loan program best fits your needs.

 

Loan Program

Description

Benefits

Drawbacks

30-year fixed rate

30-year term mortgage (monthly payment & interest rate stay constant over the loan life).

Payment never changes over the life of the loan.

Higher interest rate than most other programs.

15-year fixed rate

15-year term mortgage (monthly payment & interest rate stay constant over loan life).

Interest rate is lower than a 30-year fixed rate and payments never change over loan life).

Since the mortgage is paid off twice as fast as a 30-year fixed rate mortgage, payments are significantly higher.

10-year adjustable (ARM)

Interest rate stays constant for 10 years, then fluctuates based on market conditions.

Lower interest rate than 30-year fixed rate.

Rate can change after 10-year fixed rate period.

7-year adjustable (ARM)

Interest rate stays constant for 7 years, then fluctuates based on market conditions.

Lower interest rate than 30-year fixed rate and 10-year ARM.

Rate can change after 7-year fixed rate period.

5-year adjustable (ARM)

The interest rate stays constant for 5 years, then can change based on market conditions.

Lower interest rate than the 30-year fixed rate, 10-year ARM, and 7-year ARM.

Rate can change after the 5-year fixed rate period.

3-year adjustable (ARM)

The interest rate stays constant for 3 years, then can change based on market conditions.

Lower interest rate than the 30-year fixed rate, 10-year ARM, 7-year ARM, and 5-year adjustable.

Rate can change after the 3-year fixed rate period.

1-year adjustable (ARM)

Interest rate stays constant for 1 year, then fluctuates based on market conditions.

Lower interest rate than the 30-year fixed rate, 10-year ARM, 7-year ARM, 5-year ARM, and 3-year ARM.

Rate can change after 1-year fixed rate period.

Interest-only Option

Only required to pay interest on the loan. Typically available on 5/1 and 7/1 adjustable (ARM) mortgages.

Payments are lower because you don’t have to pay principal.  You can make principal payments at any time; and when you do, your required monthly payment will be lowered accordingly.

If paying only interest every month, you will still owe the same amount that you initially borrowed.  This loan program requires more equity than other programs.

Balloon Mortgage

Loan is amortized over a longer period (usually 30 years) but entire principal balance must be paid off after a certain number of years (usually 5 or 7 years)

Interest rates can be lower than a fixed rate mortgage.

This is considered a risky loan since the entire principal is due at the end of the loan term.