Generally we can categorize the mortgages into Fixed Rate Mortgage (FRM) and Adjustable Rate Mortgage (ARM).  With Fixed Rate Mortgage, the interest rate is locked in for the life of the loan and monthly payment remains the same throughout the duration of the term.  Fixed rate mortgages are available in 15, 20, 25 and 30 years terms. The shorter the term, the better the rate, but the monthly payment will be higher with shorter term of the loan.

 

With Adjustable Rate Mortgage, the interest rate is not locked in for entire loan term, at certain point of time, rate will fluctuate based on market interest rate environment.  The most popular type of adjustable-rate mortgage today is Hybrid ARM, which is the mix of fixed rate and adjustable rate.  Hybrid ARM sets the fixed rate for the initial first a few years, after initial fixed rate period, interest rate will change as the market dictates.  We offer 3/1, 5/1. 7/1, and 10/1 ARM.  The rates for these hybrid ARMs are fixed for initial 3, 5, 7 or 10 years and monthly payments are amortized over 30 years. After initial 3, 5, 7 or 10 years fixed rate period, your rate will be reset once a year and your minimum monthly payment will be adjusted every 12 months as well according to the loan balance, remaing term and interest rate at that time.

 

 

What kind of loan is best for you?

 

Should you get a long term fixed rate or short term fixed rate mortgage? Deciding which mortgage product is best for you will largely depend on your unique circumstances and there is no one correct answer for all. Please click following icons to learn more and consult one of our experienced loan officers. We will find a right loan to fit your needs.