Which one is right for you?
To help determine the best loan program for you, consider the following:
- How important is payment certainty? If knowing that your payment will be the same every month is important, consider a fixed-rate mortgage.
- How important is rapid equity buildup? If rapid equity buildup is a factor, consider a shorter amortization period, such as a 15-year, fixed-rate mortgage.
- Do you anticipate increasing or stable income? If income growth is anticipated, you could take advantage of a lower start rate on an ARM.
Other factors to consider include:
- Ability to qualify at market rates for loan amount selected
- Anticipated term of occupancy
- Possibility of significant rate changes
- Existence of up-front costs
Loan Programs
15- and 30-Year Fixed-Rate Mortgages
- Interest rate does not change
- Principal and interest (P&I) does not change
- Fixed-rate mortgages fully amortize over a defined period of time and are paid in full at the end of the loan term
- Different loan terms are available (15 and 30 year terms are most popular)
- The shorter the term, the faster equity is built and the loan is paid off
Adjustable-Rate Mortgages (ARMs)
- There is potential for the interest rate/payment to fluctuate
- ARMs transfer to borrowers a portion of the risk associated with a changing economy
- In exchange for sharing the risk, ARM offer borrowers initial interest rates that are substantially lower than fixed-rate mortgages
- The lower interest rate may help borrowers qualify more easily; qualifying factors may vary
Click here to download our Current Mortgage Rate Sheet and details.