|
 |
 |
Fixed Rate Mortgages vs. Adjustable Rate Mortgages (ARM)Of the hundreds and hundreds of loan programs available on the market today, they fall into 2 basic categories – Fixed Rate Mortgages and Adjustable Rate Mortgages (ARM). Fixed Rates MortgagesFixed rate mortgages are the most common. They’ve been around the longest and people are most familiar with them. With a fixed rate mortgage, the interest rate on your loan is fixed for the life of the loan (ie. 10, 15, 20, 25, or 30 years). The 30 Year Fixed Rate Mortgage is the most commonly used Loan Program. Adjustable Rate MortgagesThe second type of mortgage is the Adjustable Rate Mortgage (ARM). ARMs are fixed for a set period of time then adjust up or down with the market at the time of the adjustment. For example, a 3/1 ARM is fixed for the first 3 years then adjusts each year thereafter for the remainder of the 30-year term. There are hundreds of ARMs on the market. Some with longer or shorter fixed periods up front. Some with adjustments that happen every month or 6 months instead of annually. ARMs can be a little complicated, but often times make a lot of sense for certain borrowers. Please call one of our Loan Officers at 574-ALL-TIMES (574-255-8463) to discuss in more detail the ARM programs. 10 Popular Loan ProgramsClick below for more information. 1. Conventional Loans (with and without PMI)
|
 |