There are many different loan programs available to
our customers. The information below will explain the way each of the most common programs work so
that you can determine which program is best for you.
Other variations and loan programs may exist. Please contact one of our experienced Loan
Officers to determine which loan program best fits your needs.
| Loan Program |
Description |
Benefits |
Drawbacks |
| 30-Year Fixed |
A 30-year term mortgage, where the monthly payment and interest rate stay constant over the life of the loan. |
The payment never changes over the life of the loan. |
Higher interest rate than most other programs. |
| 15-Year Fixed |
A 15-year term mortgage, where the monthly payment and interest rate stay constant over
the life of the loan. |
The
interest rate is lower than a 30-year fixed and the payment never changes
over the life of the loan. |
Since
you're paying the mortgage off twice as fast as a 30-year fixed mortgage, you
payments are significantly higher. |
| 10-Year
Adjustable (ARM) |
The
interest rate stays constant for 10 years, then can change based on market
conditions. |
Lower interest rate than 30-year fixed. |
Rate can change after the 10-year fixed period. |
| 7-Year Adjustable (ARM) |
The interest rate stays constant for 7 years, then can change based on market
conditions. |
Lower interest rate than 30-year fixed and 10-year adjustable. |
Rate can change after the 7-year fixed period. |
| 5-Year Adjustable (ARM) |
The interest rate stays constant for 5 years, then can change based on market
conditions. |
Lower interest rate than the 30-year fixed, 10-year adjustable and 7-year
adjustable. |
Rate can change after the 5-year fixed period. |
| 3-Year Adjustable (ARM) |
The interest rate stays constant for 3 years, then can change based on market
conditions. |
Lower interest rate than the 30-year fixed, 10-year adjustable, 7-year adjustable
and 5-year adjustable. |
Rate can change after the 3-year fixed period. |
| 1-Year Adjustable (ARM) |
The interest rate stays constant for 1 year, then can change based on market
conditions. |
Lower interest rate than the 30-year fixed, 10-year adjustable, 7-year adjustable,
5-year adjustable and 3-year adjustable. |
Rate can change after the 1-year fixed period. |
| Interest-Only Option |
You are only required to pay the interest on the loan. Typically available on all adjustable (ARM) mortgages. |
Keeps payments lower since you don't have to pay principal. You can make principal payments
whenever you want and when you do, your required monthly payment will be
lowered accordingly. |
If you only pay interest every month, you will still owe the same amount you
initially borrowed. |
| Balloon Mortgage |
The loan is amortized over a longer period of time (typically 30 years), but the
entire principal balance must be paid off after a certain number of years
(typically 5 or 7 years) |
Interest rates are typically lower than a fixed rate mortgage. |
The entire loan balance must be paid off after a certain number of years. |
