Loan Options
Fixed Rate Loans—An excellent way to lock into a low interest rate for the life of your loan.
Adjustable Rate Mortgages (ARM's)—The flexible loan, with lower initial rates and payments.
Initial Fixed Rate Loan—Start with a rate generally lower than standard fixed rate loans.
| 30 Year Fixed Rate
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15 Year Fixed Rate
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| Appropriate for Borrowers Who: |
Loan Parameters |
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Appropriate for Borrowers Who: |
Loan Parameters |
- Plan to live in the property over 10 years
- Like total payment stability
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- Interest rate & monthly payment remain the same for 30 years
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- Plan on staying in property over 10-15 years
- Want to pay off property faster than 30 years
- Lower interest rate than 30 year loan
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- Interest rate & monthly payment remain the same for 15 years
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| 10/1 Year semi-fixed
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7/23 (2-Step) or '30/7 + 23'
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| Appropriate for Borrowers Who: |
Loan Parameters |
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Appropriate for Borrowers Who: |
Loan Parameters |
- Plan to live in property approximately 10 to 12 years
- Like initial payment stability, can accept interest rate change later
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- Interest rate & monthly payment fixed for the first 10 years
- Starting the 11th year, interest rate adjusted every year, so payment is subject to change every year for remainder of loan
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- Plan to live in property approximately 7 to 8 years
- Can tolerate one payment adjustment
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- Interest rate & monthly payment fixed for the first 7 years
- Conversion option: On the 8th year, interest rate adjusted to reflect prevailing fixed interest rates, resulting payment will remain the same for remainder of loan
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| 7/1 Year Semi-Fixed Rate
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5/25 (2-Step) or '30/5 + 25'
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| Appropriate for Borrowers Who: |
Loan Parameters |
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Appropriate for Borrowers Who: |
Loan Parameters |
- Plan to live in property approximately 5 to 6 years
- Like initial payment stability, can accept change later
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- Interest rate & monthly payment fixed for the first 7 years
- Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan
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- Plan to live in property approximately 5 to 6 years
- Can tolerate one payment adjustment
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- Interest rate & monthly payment remain fixed for the first 5 years
- Conversion option: On the 6th year, interest rate adjusted to reflect prevailing fixed interest rates, resulting payment will remain the same for remainder of loan
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| 5/5 & 5/1 Year semi-fixed rate
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3/3 & 3/1 Year semi-fixed
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| Appropriate for Borrowers Who: |
Loan Parameters |
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Appropriate for Borrowers Who: |
Loan Parameters |
- Plan to live in property approximately 5 to 6 years
- Like initial payment stability, can accept later changes
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- Interest rate & monthly payment remain fixed for the first 5 years
- Starting the 6th year, interest rate adjusted every 5 years(for 5/5 ARM) and every year (for 5/1 ARM)
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- Plan to live in property 3 years or less
- Like initial payment stability, can accept later changes
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- Interest rate & monthly payment remain fixed for the first 3 years
- Starting 4th year, interest rate adjusted every 3 years (for 3/3 ARM) and every year (for 3/1 ARM)
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| Adjustable rate loans
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| Appropriate for Borrowers Who: |
Loan Parameters |
- Want to take advantage of lowest rate possible
- Are willing to accept yearly payment changes OR
- Cannot qualify at higher rate programs
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- Interest rate adjusted every year, so monthly payment is subject to change every year for entire 30 year loan term
- Potential higher payments (at maximum interest rate)
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