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Choosing the correct loan is a complex process that involves many factors including, but not limited to: Length of time you plan to own the property, current income, forecasted income, current debts, credit situation and history. Below are some basic guidelines on what works in a majority of situations to give you a general idea what may be a good option. The best solution is to work with us to find the optimal loan for all of your needs. Years you plan to stay in the house | Recommended program | | 1-3 | 3/1 ARM, 1 year ARM or 6 month ARM | | 3-5 | 5/1 ARM | | 5-7 | 7/1 ARM | | 7-10 | 10/1 ARM, 30 year fixed or 15 year fixed | | 10+ | 30 year fixed or 15 year fixed | Loans | 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
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Adjustable Rate Mortgages | 10/1 ARM
7/1 ARM
3/1 ARM
1 year ARM
6 month ARM
1 month ARM | - 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
| - More risk
- Payments may change over time
- Potential for high payments if rates go up
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Balloon Mortgages | 7 year
5 year | - Lower initial monthly payment
- Lower payment over a shorter 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 or if you cannot refinance or if you cannot exercise the conversion option
| | | Loan Programs | Advantages | Disadvantages |
| | First Time Buyer | - Lower down payment
- Easier to qualify
- Sometimes you may get lower rate
| - 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.
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| | Stated Income | - Don't need to verify income
- Faster approval
| - Higher rates
- Higher down payment
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| | No point, No fee | - No closing costs
- Less money required to close
| - Higher rates
- Higher payments
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| | Imperfect Credit | - 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
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| | 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
| - Rates can change. The maximum interest rate is normally high.
- Payments can change
- Harder to refinance your first mortgage
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| | Home Equity Fixed Loan | - Fixed payments
- Interest may be tax deductible
| - 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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Last Updated ( Monday, 03 April 2006 )
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We can now take your application live over the Internet! 
*Disclaimer* Due to State Law, We Cannot Accept Applications from Residents of the State of Nebraska. |
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Newsflash |
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SI Mortgage Is Now Sistar Mortgage! |
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That's right! We have changed our name, but that's it. We are still the same, trusted company that did loans and mortgages for you in the past. |
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© 2008 Sistar Mortgage Company
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