Home Loan Programs

Which lenox home loan is right for me?

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

Loan Program	Advantages	Disadvantages
Fixed Rate Lenox Mortgage 30 year fixed 20 year fixed 15 year fixed 10 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 Mortgage (ARM) 10/1 ARM 7/1 ARM 5/1 ARM 3/1 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
First Time Buyer Programs	Lower down payment Easier to qualify Lower rates may be available	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
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

Lenox Financial Mortgage Corporation -
Office Phone: 888-395-3669 Fax: (949) 428-5101

Lenox Financial Mortgage Corporation; CA: Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. MN: This is not an offer to enter into an agreement. Any such offer may only be made pursuant to Minn. Stat. § 47.206 (3) & (4), OR: licensed by the Department of Business & Consumer Services as “Park Plaza Mortgage”. Not all programs available in all areas. Underwriting guidelines apply to all loan programs. Program restrictions apply. Programs subject to change at anytime and without advance notice.