Most common loan product.  This is a loan with a fixed rate for a term 30 years and the payments never change.  This is a satisfactory program for borrowers who feel they are going to be in their home for 12 years or longer or they feel their income will remain consistent.  Customers can budget better since they always know what their payment will be.  The downside of the program is that it takes almost 17 years to pay dollar for dollar principle to interest.  Please note that since the average American relocates or refinances aproximently every 4.8 years, the reality is that the majority of people do not stay in the loan long enough to capture its real benefits and security.  People often start over again from scratch on a 30 year loan when they refinance.

The BEST fixed rate product because you are paying dollar for dollar principle to interest from day one.  This program is ideal for customers who feel without a doubt, this is the home they are going to live in at least 15 years and want it free and clear as soon as possible.  The downside is higher monthly payments with little breathing room. The shorter the term the more expensive the payments will be on a monthly basis. 

Very popular in today's market.  All of these loans are amortized over 30 years and give you the benefit of an interest only (i/o) payment option.  Because you are not forced to pay the principle, there is a difference in payment from the regular principle and interest payment on a 30 year fixed.  You can always choose to pay extra and pay down the loan.  Most customers opt for these loans if they plan on being in their homes 10 years or less or they need some payment flexability. (college tuition, medical expenses, investments, loss of an income etc).  There are different types of these loans-PLEASE contact your experts at Second Generation to see which one works best for you.  The downside of the program is you do not pay principle down unless you pay extra each month and human nature tells us that quite often people will only pay their minimum payment.

The majority of these loans are adjustable loans that provide ultimate financial flexibility.  These loans offer a minimum payment option starting as low as 1% and have guaranteed payments for up to 10 years depending on the loan product.  The minimum payment option is normally $600-1,750 less than your standard fixed payment (depending on loan size).  Pay option loans are ideal for the following individuals:  self-employed borrowers, rolling income streams, customers who feel they currently cannot afford a fixed loan, borrowers who feel their income will increase in the coming years, borrowers who desire to purchase their dream home especially if they can not afford a fixed payment right now, borrowers who plan on moving within 10 years and borrowers who may need a few years of low payments because of various circumstances (college tuition, loss of an income, medical issues, etc). Downsides--If you pay just the minimum payment, your loan balance most likely will increase.  For more information on these loans please visit our "FAQ" section and consult your experts at Second Generation to discuss in greater detail.