Financing

Concord Advisors Professional Services Group is a South Florida business alliance comprised of individuals and businesses representing various industries.

We currently have the following members providing financing services:

Smart Choice Loan Center
Eric Purther
350 Camino Gardens Blvd
Suite 200
Boca Raton FL 33432
561-367-7182 - phone
561-367-7129 - fax
www.smartchoiceloans.com
ep@smartchoiceloanfla.com

Loan Programs

1. Fixed-Rate Mortgages
2. Adjustable-Rate Mortgages
3. Other Mortgage Programs

1. Fixed-Rate Mortgages
A fixed-rate mortgage means the interest rate and principal payments remain the same for the entire life of the loan. (Taxes, of course, may change.)

Advantages: Consistent principal and interest payments make this loan stable. Your rate won’t change, so you don’t need to worry about market fluctuations. This is a good choice if you’re likely to stay in this house for a long time.

Disadvantages: May cost you more — these loans are usually priced higher than an adjustable-rate mortgage. Keep in mind that, on average, most people move or refinance within seven years. If rates in the current market are high, you’re likely to get a better price with an adjustable-rate loan.

Types of Fixed-Rate Mortgages
30 Year Fixed-Rate Mortgage
20 Year Fixed-Rate Mortgage
15 Year Fixed-Rate Mortgage

2. Adjustable-Rate Mortgages
An adjustable-rate mortgage (ARM) means that the interest rate changes over the life of the loan — according to the terms specified in advance.

With ARMs:

• The initial interest rate is usually lower than with a fixed-rate mortgage.
• The monthly repayment would also be lower.
• The interest rate may be adjusted (up or down) at predetermined times.
• The monthly payment will then increase or decrease.
• Most ARM programs do offer "rate cap" protection, which limits the amount the rate can be increased, both each year and over the life of the loan.
• All ARMs are amortized over 30 years.

Advantages: ARMs are usually priced lower than fixed-rate mortgages so you can increase your buying power and lower your initial monthly payments. If interest rates go down, you’ll enjoy lower payments. Usually an ARM is the best choice for homeowners who plan to relocate (for example, with their company or the military), or for those who are purchasing their first home and plan to be in the property only for three to five years. Remember that, on average, most people move or refinance within seven years.

Disadvantages: Your monthly payments can increase if interest rates go up. Keep in mind that ARMs are best for homeowners who aren't planning on staying with a property for a long period. If you’re on a fixed income, an ARM (especially a short-term ARM) may not be your best choice.

Types of Adjustable-Rate Mortgages
10/1 Adjustable-Rate Mortgage
7/1 Adjustable-Rate Mortgage
5/1 Adjustable-Rate Mortgage
3/1 Adjustable-Rate Mortgage

3. Other Mortgage Programs
7 Year Balloon Mortgage
With a balloon mortgage, you start by making payments as you would with a full-term loan, but after a certain period the balance of the mortgage comes due.

With 7 Year Balloons:

• Your mortgage is amortized over the full term of the loan repayment period.
• At the end of a specified period, the balance comes due — a balloon payment needs to be made.
• So with a 7 year balloon, you would make monthly payments for seven years that have been calculated based on a 30 year mortgage payment plan.
• At the end of those seven years, the remaining principal balance is due and payable in full.

Advantages: You’ll get a lower price on the loan, which will increase your buying power — and remember that your payments will be calculated as if the term were 30 years. You’ll also usually have a conditional right to refinance after seven years, though on average most owners will have already made a change. If you know you have a lump sum of money on the way (such as an inheritance, bonus, or dividend payment), if you expect to relocate in a short period of time, or if you simply think you’ll be in a better position to refinance later, this may be a choice worth your consideration.

Disadvantages: If you plan on keeping this property for longer than seven years, a longer-term loan may be a stronger choice.

Learn more about Mortgages