Mortgage Loan Types
► Fixed Rate Mortgage
- The traditional fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.
► Adjustable Rate Mortgages (ARM)
- Ask our Centennial Bank Mortgage Loan Originator for ARM details. Hybrid ARMS have become increasingly popular and can offer the best of both worlds: lower potential interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.