Types Of Loan Programs Fixed vs Adjustable

One of the first choices a homebuyer will need to make is whether you want a fixed-rate or an adjustable-rate mortgage loan. The bulk of loans will fit into one of these two categories, however, there is a third option that will allow you to “hybrid” the two.

An adjustable-rate mortgage, (ARM): The interest rate of the mortgage adjusts periodically based on market conditions. For example, your payment will go up if rates go up and go down if rates go down. Fixed-rate Mortgage: Unlike an adjustable-rate mortgage the interest rate is set at the time you take out the loan and will not change. Fixed-rate home loans can be 10 years, 15 years, 20 years or 30 years fixed. 30-year fixed is the most common because it allows your mortgage payment to be the lowest. Hybrid ARM: Features an initial fixed interest rate for a certain amount of time and then becomes an adjustable-rate for the remainder of the term. Standard terms are 3, 5, 7, or 10 yrs.

Links

Licensing

Anthony Diaz NMLS# 1625821
Branch NMLS# 1359704

Contact Us

Anthony Diaz - American Residential Lending
7821 N Dale Mabry Hwy
Tampa, FL 33614
Phone: (813) 999-2119

BUSINESS HOURS

M-F: 9:00 am - 6:00 pm
SAT: by appointment only
SUN: closed

SEND US A MESSAGE