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401 West State Street
Olean, NY 14760
(716) 372-7100
(716) 933-7777


Email: broker@realpros.biz
PA Lic. # SBR001112

 

Thank you for visiting today. If this is your first visit, take your time and look around. We have plenty of information and resources available to you. If you are a return visitor, thank you. We would love to hear from you and tell you how we can serve all your real estate needs.  If you would like to see additional content offered here - please let us know.  We wish to make this site "the buyers one stop resource" for the home buying process. 

Loan Programs

 

 

Which loan is right for me? 

With the possibility of interest rate increases on the horizon, I would rather see purchasers consider fixed rate programs only (at the current time). 

 

Talk with your lender or financial adviser for more information - see below.


Years you plan to stay in the home Recommended program
1-3 years 3/1 ARM,
3-5 years 5/1 ARM
5-7 years 7/1 ARM
7-10 years 30 year fixed or 15 year fixed
10+ years 30 year fixed or 15 year fixed


Loan Program Advantages Disadvantages
Fixed Rate Mortgages
  • 30 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
  • Can refinance if rates go down
  • Higher interest rate
  • Higher mortgage payments
  • Rate does not drop if interest rates improve
 
Loan Program Advantages Disadvantages
Adjustable Rate Mortgages (ARM)
  • 10/1 ARM
  • 7/1 ARM
  • 5/1 ARM
  • 3/1 ARM
  • 1 year ARM
  • Lower initial monthly payment
  • Rates and payments may go down if rates improve
  • May qualify for higher loan amounts
  • 30 year term, no balloon payment
  • *More risk*
  • Payments may change over time
  • Potential for higher payments if rates increase
 
Loan Program Advantages Disadvantages
Balloon Mortgages
  • 7 year
  • 5 year
  • Lower initial monthly payment
  • Lower payment for a predetermined period of time
  • Many balloon mortgages offer the option to convert to a new loan after the initial term
  • Risk of rates being higher at the end of the initial fixed period
  • Risk of foreclosure if you cannot make balloon payment, refinance, or exercise the conversion option
  • Balloon payment requires you to sell or refinance after the term, as opposed to a 7/1 or 5/1 program with a 30 year term
 
Loan Program Advantages Disadvantages

First Time Buyer Programs

 

Call for a list of programs available:

 

  • Lower down payment
  • Easier to qualify
  • Lower rates may be available
  •  716-933-7777
  • Randy Pepper Realty
  • May be subject to income and property value limitations
  • Some government subsidized programs may generate a recapture tax if you sell the house too soon
  • Education courses may be required to qualify for these loans
 
Loan Program Advantages Disadvantages
Stated Income Programs
  • Don't need to verify income
  • Faster approval
  • Good for borrowers who may not qualify with a full income documentation program
  • Higher rates
  • Higher down payment
 
Loan Program Advantages Disadvantages
Interest Only Programs
  • You have several payment options
  • Lower monthly payments
  • Qualify for a higher loan amount
  • Qualify at the interest only payment
  • Option to pay the full normal payment
  • Interest only payments for up to ten years
  • Higher rates
  • Principal loan balance will not decrease during the interest only payment period
  • Payment will be higher for the remaining term
 
Loan Program Advantages Disadvantages
No point, No fee Programs
  • No out-of-pocket loan costs at closing
  • Closing costs are paid from the lender rebate
  • Less money required to close
  • Refinance without increasing your loan amount
  • Higher rates
  • Higher payments
  • Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you
  • Some require a prepayment penalty for the first one to five years
 
Loan Program Advantages Disadvantages
Imperfect Credit Programs
  • 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
  • Higher rates
  • Terms may not be as favorable
  • Harder to get long-term fixed loans
  • Loans may have prepayment penalties
 
Loan Program Advantages Disadvantages
Home Equity Line of Credit
  • You only borrow what you need
  • Pay interest only on what you borrow
  • Flexible access to funds
  • Interest may be tax deductible
  • May be free of closing costs
  • A good source for an emergency fund, if set up in advance
  • Can be used for debt consolidation and lower payments
  • Rates are usually lower than consumer loan or credit card rates
  • Rates can change. The maximum interest rate can be relatively high
  • Payments can change
  • Harder to refinance your first mortgage
 
Loan Program Advantages Disadvantages
Home Equity Fixed Loan
  • Fixed payments
  • Interest may be tax deductible
  • Get cash out for any purpose
  • Higher interest rates compared to first mortgage
  • Harder to refinance your first mortgage
  • Interest is paid on the entire loan amount, compared to an equity line of credit

In addition to our standard loan programs, you may benefit by obtaining one of our many special programs:

  • Purchase your home with no down payment using Private Mortgage Insurance (PMI) or Lender-paid Mortgage Insurance (MI).
  • Piggyback loans: 80-10-10 or 80-15-5. Avoid PMI payments by using Lender-paid MI.
  • Debt consolidation programs.
  • Home Improvement loans.
  • You may qualify even if you've been turned down before!

 

Lenders/Brokers to have a link of your bank or brokerage placed here, please email me with the logo and link information to randy@randypepper.com  As this site grows so does our services & we are always looking for more business partners.