With so many loan programs available, it is easy to get confused and make
                  the wrong choice. Considering the fact that your home purchase is probably
                  the most significant financial event of your life, this decision should be made
                  very carefully. 

                  To help you make the right decision, Microsurf along with several of their
                  participating lenders, has assembled this overview of the various programs
                  which are available to you, and for each of these programs provides
                  guidelines for determining whether this loan is right for you. 
 

                 30-Year Fixed Rate Mortgage
                  This is the most popular and conventional loan program. Your monthly

                  This loan is probably right for you if you don't plan to move or refinance for
                  at least 10 years and you expect interest rates to increase over this period,
                  or you just feel uncomfortable making an interest-rate bet at this time. This
                  loan may also be right for you if you don't expect your income to increase
                  significantly over the next several years. 

                 20 Year Fixed Rate Mortgage
                  Like the 30-Year Fixed Rate Mortgage, this program guarantees that your
                  payment never changes over the life of your loan. Since you are committing
                  to pay off your loan over a shorter period, however, your monthly payment
                  will be significantly higher than for the previous program. 

                  This loan is right for you if you are interested in owning your home without
                  debt and therefore wish to pay off your loan more quickly. This loan may
                  also be appropriate if you expect to stay in this home in your retriement and
                  you will be retiring in fewer than 30-years, and do not wish to start
                  retirement with any debt. 

                 15 Year Fixed Rate Mortgage
                  The most aggressive of the Fixed Rate Mortgage options. This loan is paid
                  off in only 15 years, resulting in a much higher monthly payment. Sometimes
                  referred to as the "Yuppie Mortgage", this program is for individuals who
                  can afford the higher monthly payment and are willing to pay more over a
                  shorter period of time with the goal of owning the home without debt as
                  soon as possible. 

                  This loan is for you if you are very aggressive about owning your home
                  sooner or are close to retirement and wish to remain in your home and not
                  start retirement with any significant debt. 

                 5 Year Adjustable Rate Mortgage
                  This is a 30 year loan in which the rate (and therefore your monthly
                  payment) changes every 5 years. 

                  This loan is a nice compromise between shorter term Adjustable Rate
                  Mortgages and Fixed Rate programs. You should choose this program if
                  you expect to stay in your current home beyond the initial five years, you still
                  wish to keep your payments relatively low, and you are willing to accept a
                  small amount of interest rate risk in exchange for this benefit. Do not take
                  this program if you are concerned that your income may not support
                  increases in your monthly payment. 

                 3/1 Adjustable Rate Mortgage
                  This 30 year loan offers a fixed interest rate for the first three years and then
                  turns into a 1 Year Adjustable Rate Mortgage for the remaining 27 years of
                  the loan. This loan has become quite popular in the last two years and should
                  be considered by all those seeking to minimize monthly payments while
                  accepting a certain amount of risk. 

                  This loan is right for you if you wish to maximize the amount of loan you
                  qualify for and expect to remain in this home for more than 3 years. This loan
                  is generally the least expensive way to fix your monthly payment for the first
                  three years of your loan. After that, the loan behaves like a 1 Year ARM
                  with all of its risks and rewards. Do not take this loan if you are concerned
                  that your income in three years may not cover your monthly payment after
                  your first adjustment. 

                 10/1 Adjustable Rate Mortgage
                  This 30 year loan offers a fixed interest rate for the first ten years and then
                  turns into a 1 Year Adjustable Rate Mortgage for the remaining 20 years of
                  the loan. 

                  This loan is right for you if you plan to remain in this home at least the initial
                  ten years, but consider it likely that you may wish to remain longer. Select
                  this loan if you wish to have a long period of fixed monthly payments, but still
                  wish to enjoy some savings over the 30 Year Fixed Rate Mortgage. 

                 5/25 Balloon Mortgage
                  Although your monthly payment is calculated as if you will pay off the loan
                  over 30 years, this loan requires that you completely pay your remaining
                  balance (a significant percentage of your original loan amount) in a single
                  payment after 5 years. No, the lender does not expect you to win the lottery.
                  The idea of this loan is that you will sell your home or refinance on or before
                  your balloon payment date. 

                  This loan is the perfect program for temporarily relocated workers or others
                  who are certain they will not stay in their new home beyond the 5 year
                  period. Unlike the 5 Year Adjustable, 5/1 Adjustable, and 5/25 Two-Step
                  programs which also offer a fixed rate for 5 years, the borrower often enjoys
                  a lower interest rate for this program because he is not obliging the lender to
                  extend credit to him beyond the initial fixed period. 

                  Note: Some balloon programs offer the borrower a Conditional Right to
                  Reset which effectively provides for an extension beyond the initial fixed
                  period. 

                 7/23 Balloon Mortgage
                  A longer version of the 5/25 Balloon Mortgage. Your monthly payment is
                  calculated based on a 30 year amortization schedule, but you are required to
                  pay off your outstanding balance after 7 years. 

                  This loan is for you if you are certain you will be moving or refinancing on or
                  before the 7 year deadline, and you wish to have the security of a fixed
                  payment amount during this period. 

                  Note: Some balloon programs offer the borrower a Conditional Right to
                  Reset which effectively provides for an extension beyond the initial fixed
                  period. 

                 5/25 Two-Step Mortgage
                  This 30 year mortgage offers an initial five year fixed rate. After this initial
                  period expires, the rate is adjusted once for the remaining 25 years of the
                  loan. 

                  Select this loan if you expect to remain in the home for at least five years, but
                  consider it a possibility that you could remain much longer. Since there is
                  uncertainty about how much your payment will change after year five, you
                  should only consider this program if you expect to be able to afford your
                  post-adjustment monthly payment. If you are certain that you will be moving
                  or refinancing within five years, you should consider the 5/25 Balloon
                  program, but only if there is a significant monthly savings. 

                  Note: This Loan is not known to be available in a Jumbo program. 

                 7/23 Two-Step Mortgage
                  This 30 year mortgage offers an initial seven year fixed rate. After this initial
                  period expires, the rate is adjusted once for the remaining 23 years of the
                  loan. 

                  Select this loan if you expect to remain in the home for at least seven years,
                  but consider it a possibility that you could remain much longer and you are
                  comfortable with the prospect of a future adjustment. If you are certain that
                  you will be moving or refinancing within seven years, you should consider the
                  7/23 Balloon program, but only if there is a significant monthly savings. 

                 2/28 Adjustable Rate Mortgage
                  This program is a 30 year adjustable program, except that the first
                  adjustment does not occur until 2 years into the loan. At this point,
                  adjustments are typically made every 6 months. Ask your lender about the
                  frequency of adjustments, since some 2/28 loans adjust every year. 

                  This program is primarily offered for consumers with less-than-perfect
                  credit. The intention of this loan is to allow the borrower 2 years to improve
                  his or her credit rating, at which point the borrower may refinance at a better
                  rate. 

                  3/27 Adjustable Rate Mortgage
                  Like the 2/28 Adjustable Rate Mortgage, except that the initial fixed period
                  is 3 years instead of 2 years.