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What's the right loan for me?
Fixed Rate Mortgages 30 year fixed / 15 year fixed
Advantages
- Monthly payments are fixed over the life of the loan
- Interest rate does not change
- Protected if rates go up
- Can refinance if rates go down
Disadvantages
- Higher interest rate
- Higher mortgage payments
- Rate does not drop if interest rates improve
Adjustable Rate Mortgages
10/1 ARM 7/1 ARM 3/1 ARM 1 year ARM 6mo. ARM 1mo. ARM
Advantages
- Lower initial monthly payment
- Lower payment over a shorter period of time
- Rates and payments may go down if rates improve
- May qualify for higher loan amounts
Disadvantages
- More risk
- Payments may change over time
- Potential for high payments if rates go up
First Time Buyer Programs
Advantages
- Lower down payment
- Easier to qualify
- Sometimes you may get lower rates
Disadvantages
- May be subject to income and property value limitations
- Some programs which have government subsidies may have a recapture tax if you sell the house too early.
Stated Income Programs
Advantages
- Don't need to verify income
- Faster approval
Disadvantages
- Higher rates
- Higher down payment
No point, No fee Programs
Advantages
- No closing costs
- Less money required to close
Disadvantages
- Higher rates
- Higher payments
Imperfect Credit Programs
Advantages
- Potential for reestablishing credit if you pay your mortgage on time
- When used for debt consolidation, you may be able to reduce your monthly debt payment
Disadvantages
- Higher rates
- Terms may not be as favorable
- Harder to get long term fixed loans
- Loans may have prepayment penalties
Home Equity Line of Credit
Advantages
- You only borrow what you need
- Pay interest only on what you borrow
- Flexible access to funds
- Interest may be tax deductible
Disadvantages
- Rates can change.
- The maximum interest rate is normally high
- Payments can change
- May be harder to refinance your first mortgage
Home Equity Fixed Loan
Advantages
- Fixed payments
- Interest may be tax deductible
Disadvantages
- Higher interest rates than on 1st mortgages
- Harder to refinance your first mortgage
Besides our standard loan programs, we also have a large number of unique programs to serve your needs:
- Purchase a house with 0 down
- Piggyback loans 80-10-10 or 80-15-5. No PMI payments even with 5% or 10% down
- Debt consolidation programs
- Home Improvement loans
- Qualify even if you may have been turned down before!
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 American Home Loans is an Equal Housing Opportunity Lender
Copyright 2006 American Home Loans
16541 Gothard Street, Suite 104 Huntington Beach, CA 92647. Phone: 800-967-3020.Contact Us
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