types of loans

• 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
Borrower Goals	Loan Parameters
•  Plan to live in the property over 10 years •  Like total payment stability	•  Interest rate & monthly payment remain the same for 30 years

 

15 Year Fixed Rate
Borrower Goals	Loan Parameters
•  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	•  Interest rate & monthly payment remain the same for 15 years

 

10/1 Year semi-fixed
Borrower Goals	Loan Parameters
•  Plan to live in property approximately 10 to 12 years •  Like initial payment stability, can accept interest rate change later	•  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

 

7/1 Year semi-fixed rate
Borrower Goals	Loan Parameters
•  Plan to live in property approximately 7 to 8 years •  Like initial payment stability, can accept change later	•  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

5/25 (2-Step) or '30/5 + 25'
Borrower Goals	Loan Parameters
•  Plan to live in property approximately 5 to 6 years •  Can tolerate one payment adjustment	•  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

5/5 & 5/1 Year semi-fixed rate
Borrower Goals	Loan Parameters
•  Plan to live in property approximately 5 to 6 years •  Like initial payment stability, can accept later changes	•  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)

 

3/3 & 3/1 Year semi-fixed
Borrower Goals	Loan Parameters
•  Plan to live in property 3 years or less •  Like initial payment stability, can accept later changes	•  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)