Loan Programs: Fixed Rate Mortgages, Adjustable Rate Mortgages, First Time Buyer

There are many loan programs available - too numerous to cover them all, we've highlighted the programs more commonly offered today. Characteristics of each loan program are unique, so consult your mortgage professional for more information and to become familiar with the details of the programs available to you.

To help determine the best loan program for you, consider the following:

How important is payment certainty? If knowing that your payment will be the same every month is important, consider a fixed-rate mortgage.
How important is rapid equity buildup? If rapid equity buildup is a factor, consider a shorter amortization period, such as a 15-year, fixed-rate mortgage.
Do you anticipate increasing or stable income? If income growth is anticipated, you could take advantage of a lower start rate on an ARM or a temporary buydown.
Other factors to consider include:
- ability to qualify at market rates for loan amount selected
- anticipated term of occupancy
- possibility of significant rate changes
- existence of up-front costs

Loan Programs	Characteristics
15- and 30-Year Fixed-Rate Mortgages	Interest rate does not change. Principal and interest (P & I) does not change. Fixed-rate mortgages fully amortize over a defined period of time and are paid in-full at the end of the loan term. Different loan terms are available (15- and 30-year terms are most popular). The shorter the term, the faster equity is built and the loan is paid off.
Adjustable-Rate Mortgages (ARMs)	There is potential for the interest rate/ payment to fluctuate. ARMs transfer to borrowers a portion of the risk associated with a changing economy. In exchange for sharing the risk, ARMs offer borrowers initial interest rates that are substantially lower than fixed-rate mortgages. The lower interest rate may help borrowers qualify more easily; qualifying factors may vary.