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Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly principal and interest payments that never change. Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment. Twenty-Year Fixed Rate Mortgage This loan is often looked at as a compromise between the Thirty Year and Fifteen Year fixed rate mortgages. The payment is not as strong as the 15 year loan and the interest rate is usually slightly lower than the 30 year loan. This loan is fully amortized over a 20-year period and features constant monthly payments. Forty-Year Fixed Rate Mortgage This loan offers a 40 year amortization. This product offers all of the features of the above loans, but gives you the flexibility of lower monthly payments. Adjustable Rate Mortgages(3/1 ARM, 5/1 ARM, 1/1 ARM)
These increasingly popular ARMS—also called 3/1, 5/1 or 1/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs. Please call KSCCU for an interest rate quote and more information.
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