Home Mortgage Options

Fixed Rate Mortgages

If you want the stability of a set rate for the life of your loan, then a fixed rate mortgage may be best for you. Fixed Rate Mortgages are available in 15-, 30- and 40-year options. Usually, the longer the term of the mortgage, the more interest you pay over the life of your loan. However, a longer term means your monthly mortgages payments will be less than with a shorter-term mortgage.

Adjustable Rate Mortgages (ARM)

Adjustable Rate Mortgages start out with a lower interest rate, but over time, the interest rate may adjust periodically. If you believe your income will increase steadily over the next few years, or if you don't plan on staying in the home for more than a few years, you may want to consider an ARM. Interest rates may move up or down as market conditions change, but increases are typically subject to two caps, one for each adjustment period and one for the life of the loan.

Interest Only Mortgages

A mortgage is "interest only" if the scheduled monthly payment consists of the interest only - and nothing from the principal loan amount. The option to pay only the interest on the loan lasts for a specified period of time - usually 5, 7 or 10 years. After that, the loan reverts to a traditional fixed rate mortgage with predetermined conditions. Interest-only mortgages are for borrowers who have a good reason for preferring the lower initial required payment, and are prepared to deal with the consequences.

Ask your One Market Realty mortgage specialist for other options that might be available to you.