Fixed Rate and Adjustable Rate Mortgages Loans (ARM)

With a fixed rate mortgage loan, the interest rate is set when you take out the loan and will not change. Typically loan terms are fixed for 30 years, 15 years, 10 years, 7 years, 5 years, and 3 years. That predictability makes it easier to set your budget. Fixed-rate mortgage loans are a good choice if you:

1. Think interest rates could rise in the next few years and want to keep the current rate
2. Plan to stay in your home for many years
3.Prefer the stability of a fixed principal/interest payment to a payment that changes periodically. Learn More

With an adjustable rate mortgage loan (ARM), the interest rate may go up or down. Many ARMs will start at a lower interest rate than fixed rate mortgages. An adjustable rate mortgage loan(ARM) key benefits are:
1. Typically ARMs have a lower initial interest rate than on a fixed-rate mortgage loan.
2. The interest rate cap limits the maximum amount your P&I payment may increase at each interest rate adjustment and over the life of the loan.
3. May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years. Learn More

Loan Programs