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.

• Plan to live on the property for approximately 10 to 12 years.
• Like initial payment stability, can accept interest rate changes 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.

• Plan to live in property approximately 7 to 8 years
• Can tolerate one payment adjustment

• Interest rate & monthly payment fixed for the first 7 years.
• Conversion option: On the 8th year, interest rate adjusted to reflect prevailing fixed interest rates, resulting payment will remain the same for remainder of loan.

• Plan to live on the property for 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, the interest rate is adjusted every year, so payment is subject to change every year for the remainder of the loan

• 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

• 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)

• 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)

• Want to take advantage of lowest rate possible
• Are willing to accept yearly payment changes OR
• Cannot qualify at higher rate programs

• Interest rate adjusted every year, so monthly payment is subject to change every year for entire 30 year loan term
• Potential higher payments (at maximum interest rate)