9/22/2002
New Houston home Owner
"I applied ONLINE and got my loan in 2 weeks!"

8/19/2002
Loan Applicant
Getting Pre-Qualified was never easier.

7/11/2002
New Home Owner
"The process was painless!"

Dear Homeowner,

"Now is the time to take advantage of falling interest rates! There is no advantage in waiting any longer"

Houston Home Loan Programs

Which loan is right for me?

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

Loan Programs	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

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

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

First Time Buyer Programs
	Lower down payment Easier to qualify Sometimes you may get lower rate 3% Down Payment	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.

Stated Income Programs
	Don't need to verify income Faster approval	Higher rates Higher down payment

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 Higher Down Payment 5% plus

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

Home Equity Fixed Loan
	Fixed payments Interest may be tax deductible	Higher interest rates than on 1^st 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 (Depends on CREDIT)
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!

APPLY NOW!

Houston Home Loan Programs

Which loan is right for me?

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

Loan Programs

Advantages

Disadvantages

Fixed Rate Mortgages

30 year fixed15 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

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

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

First Time Buyer Programs

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.

Stated Income Programs

Don't need to verify income

Faster approval

Higher rates

Higher down payment

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

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

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 (Depends on CREDIT)

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!

30 year fixed
15 year fixed

10/1 ARM
7/1 ARM
3/1 ARM
1 year ARM
6 month ARM
1 month ARM

7 year
5 year

Higher interest rates than on 1^st mortgages