Fixed Rate Loans The fixed-rate mortgage has long been the most popular home financing product. With an interest rate that never changes, it provides stable, predictable monthly payments throughout the life of the loan. Your monthly payments won't decrease if market rates go down, but you'll have the comfort of knowing you are protected if rates go up. If you plan to stay in your home for more than seven years, and prefer the security of stable payments to being at the mercy of the market, a fixed-rate mortgage may be the best option for you.
Adjustable-rate mortgage (ARM)
An adjustable-rate mortgage has a low starting rate, so your initial monthly payments on an ARM will be lower than on a fixed-rate loan for the same amount. And because the amount you can borrow is based partly on how much you can pay each month, your maximum loan amount will probably be higher with an ARM.
Balloon mortgage
A balloon mortgage has a lower rate and lower monthly payments than a fixed-rate mortgage. Like an ARM, a balloon loan can help you either save money each month or borrow more for your home purchase. Monthly payments on a balloon loan are fixed for a certain term. A final balloon payment for the entire remaining balance is due at the end of the term.
Mortgage Calculators
Learn More~