Mortgage Loan Options

An Adjustable-Rate Mortgage (ARM) is a type of home loan with a potential varying monthly payment. The interest rate of the loan may adjust periodically depending on changes in the market associated with the loan. When the rate changes, your monthly payment will adjust accordingly. Generally, if rates go up, your monthly payments will increase and vice versa - if rates fall, your payment will decrease.

An ARM is the solution for you if:

• You plan to live in your home for three to five years.
• You expect an income increase in the near future.

• A lower initial interest rate than most fixed rate loans.
• Lower payments at the beginning of your loan.

With the benefits associated with an ARM, comes the potential risk that increasing interest rates could lead to a higher monthly payment in the future.

An FHA Loan is a type of government-backed loan that allows homebuyers to qualify for a loan with a minimal down payment. 

An FHA Loan is right for you if you are a homebuyer looking for a lower down payment.

• Low down payments
• Low closing costs
• Government-backed loan
• Easy credit qualifying
• Pay principal on your loan at any time with no penalties
• Available with both fixed- and adjustable-rate mortgages

A Fixed-Rate Mortgage is a type of home loan with a set mortgage payment each month. This loan is predictable, as your mortgage rate and your total monthly payment, including principal and interest are the same amount for the full term of the loan.

A Fixed-Rate Mortgage is the solution for you if:

• You plan to stay in your home for a longer period of time.
• You think interest will increase and want to keep your current rate.
• You are looking for flexibility in deciding the life of your loan.

With a Fixed-Rate Mortgage, you have two choices - a long or short amortization period. Each has different benefits. The longer the amortization period, the lower your monthly payment will be, however, there are benefits of each.

By choosing a longer amortization period, you'll:

• See lower monthly payments.
• See your payment remains the same throughout the loan.
• Pay principal on your loan at any time with no penalties.

By choosing a shorter amortization period, you'll:

• See your payment remains the same throughout the loan.
• See a lower interest rate than a loan with a longer rate.
• Pay less than half the total interest costs over the life of the loan.
• Pay off your loan quicker with higher monthly payments.
• Pay principal on your loan at any time with no penalties.

A USDA loan is a type of government-backed loan offered by the U.S. Department of Agriculture (USDA) to encourage homebuyers to live in rural and suburban areas by making land and property more affordable.

A USDA Loan is right for you if you are looking for a home in a rural area with a lower down payment.

• Minimal down payment
• Closing costs as part of the loan amount
• Government-backed loan
• Loan funds may be used to purchase and repair a home
• Lower payments than a traditional mortgage loan
• No maximum purchase price
• No monthly mortgage insurance

A VA Loan is a type of government-insured home loan offered by the  U.S. Department of Veterans Affairs (VA) providing many benefits to service members for their dedication to our country.

A VA Loan is the solution for you if:

• You are a service member looking to purchase a home or refinance your current home.
• You meet one of the following qualifications:
  1. Served 90 consecutive days of service during wartime, OR,
  2. Served 181 days of service during peacetime, OR,
  3. You have more than 6 years of service in the National Guard or Reserves, OR,
  4. You are the spouse of a service member who died in the line of duty or as a result of a service-related disability.

• No down payment
• No private mortgage insurance (PMI)
• Government-backed loan
• Competitive interest rates