Figuring out which loan is right for you can be a confusing
process. To help ease your frustration, we have provided
explanations of the most common loan programs available.

Because there are both advantages and disadvantages
with any loan program, please feel free to contact C.A.P.
Mortgage, Inc. directly to find the loan that best meets your
specific circumstances and goals.


Fixed Rate Mortgages
30-year fixed/15-year fixed

A Fixed Rate Mortgage(FRM)is a mortgage in
which the interest rate and payments do
not change during the entire term of the
loan. With this type of loan, you are
protected if rates go up.

Adjustable Rate Mortgages
10/1 ARM, 7/1 ARM, 3/1 ARM, 1-year ARM,
6-month ARM,1-month ARM

An ARM initially has a lower monthly
payment over a shorter period of time
but your monthly payment may change
according to federal interest rates.
Rates and payments may go down if rates
improve but if rates go up, so will your
payments. The interest rate on an ARM is
adjusted periodically based on a
preselected index. The time between
changes in the interest rate is known as
the adjustment interval (typically one,
three, or five years depending on the index). However, by pursuing an ARM, you may qualify
for higher loan amounts. Adjustable Rate
Mortgages (ARM) are also commonly called the
"re-negotiable rate mortgage", the "variable
rate mortgage", or the "Canadian rollover"
mortgage.

Construction Loans
These loans are typically short-term loans that usually range between 6 and 9 months. The money is used to pay for the construction of a home and is dispersed through several installments as construction progresses. Land to build your home can be purchased through a construction loan. Monthly interest payments are based on the amount of the construction loan actually used and not the total amount of the construction loan. Once the home is complete, refinancing into a longer-term loan pays off the construction loan.

Balloon Mortgages
5 year/7 year

A balloon mortgage requires that a final
lump sum payment be due or refinanced at
the end of a specified term or period.
Many balloon mortgages offer the option
to convert to a new loan at the maturity
date of a balloon mortgage. Initially,
lower payments over a shorter period of
time can be expected. However, interest
rates could be higher at the end of the
initial fixed periods. Also, you risk the
possibility of foreclosure if you are
unable to make the balloon payment,
refinance your loan or capitalize on the
conversion option.

Home Equity Loans
Line of Credit/ Fixed Loan

A homeowner's equity is his/her financial
interest in a property. You can obtain a
line of credit (a relatively flexible
access to funds) against your home's
equity, borrowing only what you need and
paying interest only on what you borrow.
Your rates and payments may change. You
can also obtain a home equity fixed loan
with fixed payments and tax deductible
interest. However, with Home Equity Loans,
you may find it harder to refinance your
first mortgage.

To calculate your home equity, figure the
difference between the fair market value
of the property and the amount you still
owe on its mortgage.

Stated Income Loans
If your income allows, you can secure fast
approval of your loan without income
verification. However, stated income
loans typically come with higher interest
rates and higher payments.

First Time Buyer Loans

First time buyer loans are generally
easier to obtain. Typically, a lower down
payment is required and you may qualify
for a lower interest rate. First time
buyer loans may be subject to income and
property value limitations. There are
government funded programs to assist first
time buyers in obtaining his/her loan.

Imperfect Credit Loans
Imperfect credit loans allow you to obtain
a mortgage even if you have bad credit.In
general, the terms of this type of loan may
include higher interest rates, a larger down payment, and prepayment penalities.

Debt Consolidation
There are many loans available to you if
you are trying to consolidate your debt.
Interest rates will typically vary and you
can pay-off several accounts while having
one monthly payment.

Refinance Loans
Refinancing is typically done to lower an interest rate on a current mortgage or to use cash from the equity in the property.

Conforming Mortgages
Conforming mortgages have specific loan amount
limits. These loans are eligible for purchase
by the two major Federal agencies that buy
mortgages, Fannie Mae and Freddie Mac.

199 Route 299, Suite 103, Highland, NY 12528
Phone: (800)-456-4941 Fax: (845)-691-5887
Email:MCAP@capmortgageinc.com