Fixed Rate Mortgages

• Is a stable payment more important to you than the lowest rate? – Fixed/Adjustable and 1-Year Adjustable Rate Mortgages have lower starting rates. But if the possibility that your rate and payment could go up each year makes you nervous, stay with a Fixed-Rate Mortgage.
• How long do you intend to live in the home? – On average, people move or refinance their mortgages every 5 to 7 years. If you expect to remain in your home longer, a Fixed-Rate Mortgage could make more sense because your rate and payment won't change. If you expect to move or refinance sooner, a Fixed/Adjustable Mortgage may be more economical choice. You have a lower starting rate fixed for the first few years.
• How high are mortgage rates in general and where might they be moving? – Predicting where mortgage rates will move is virtually impossible to do with any certainty. Market rates are generally determined based on the inflation expectations of bond-market investors. However, we can tell you if current rates are relatively high or low based on recent history. Generally anything under 8% is low. If you'll be in a house long-term, you should give preference to a Fixed-Rate Mortgage. On the other hand, if rates are 9% or above, a Fixed/Adjustable with a shorter fixed period or an ARM may be better. Rates that high generally don't stay high for long. Your rate will adjust downward when rates fall without the cost of refinancing.

• 1 to 4 family primary residences
• Second homes or investment properties
• Condominiums/Townhouses
• Construction loans*
• Construction to first mortgage conversion loans*
• Mortgage refinancing

• StreetWise Homebuyers and Mortgage Guide
• Frequently Asked Questions
• Mortgage Calculators