WHAT IS A FIXED-RATE MORTGAGE?
A fixed rate mortgage is a financing option that allows borrowers to effectively maintain a long-term budget. With a fixed-rate mortgage, the interest rate on the loan remains the same through the term of the loan, giving borrowers who want relatively consistent payments the ability to take advantage of low rates while they are available. This loan type is popular among borrowers who plan to live in their newly purchased home for more than 5-10 years.
We offer fixed rate mortgages for loan terms ranging from 5 years to 30 years. The length of the term determines the amount of your monthly payments. With a shorter term loan, like a 5 year or 10 year, you will have less payments than you would with a longer term loan, but the monthly payment amount will be higher because the payback time is condensed.
WHAT IS AN ADJUSTABLE RATE MORTGAGE (ARM)?
An adjustable rate mortgage is a financing option that allows borrowers to take advantage of falling interest rates without having to refinance. With an adjustable rate mortgage, the interest rate on the loan is initially set at a fixed-rate for a certain period of time, and is followed by periodic adjustments to the rate based off the current index value (?). Often having a lower initial interest rate than a fixed-rate mortgage, an adjustable rate mortgage is ideal for buyers who plan to sell their home after a few years, allowing them to avoid a potentially higher index value after the rate adjusts.
Our adjustable rate mortgages are available for 1,3,5, or 7 year terms. The rates adjust after the term and each year thereafter according to the type of ARM.
All situations are unique to each homeowner. We will work with you to determine a loan term that is best for your budget and home ownership goals. Let's get started.