Home About Featured Home Listings Contact Us
30 Year Fixed Rate Mortgage

With a 30 year fixed rate mortgage, your interest rate does not change, your payment does not change, and you pay the loan off in 30 years. Traditionally, this has been the most popular mortgage when interest rates are low because you can lock in and secure a low interest rate.

Advantages

Disadvantages

  • Lower monthly payments than a 15 year fixed rate mortgage
  • Interest rate does not go up if interest rates go up
  • Payment does not go up, it stays the same for 30 years
  • Pay a higher interest rate than a 15 year fixed rate mortgage
  • Interest rate stays the same if interest rates go down
15 Year Fixed Rate Mortgage

With a 15 year fixed rate mortgage, your interest rate does not change, your payment does not change, and you pay the loan off in 15 years. This hast been popular among people who are refinancing their 30 year loan.

Advantages

Disadvantages

  • Lower interest rate than a 30 year fixed rate mortgage
  • Build up equity in your home faster than with a 30 year loan
  • Interest rate does not go up if interest rates go up
  • Payment does not go up, it stays the same for 15 years
  • Higher monthly payment than a 30 year fixed rate mortgage

1/1 ARM -

1/1 ARM is an adjustable-rate mortgage, or ARM, that has an initial interest rate for the first year, and thereafter has an adjustment interval of one year. Each annual rate adjustment is based on (or "indexed to") another rate -- often the yield on a Treasury note.

5/1 ARM -

5/1 ARM is an adjustable-rate mortgage (ARM) that has an initial interest rate for five years, and thereafter has an adjustment interval of one year. The adjustment is based on (or "indexed to") another rate -- often the yield on a Treasury note.

30-year FHA mortgage -

30-year FHA mortgage refinance A 30-year FHA mortgage is insured by the Federal Housing Administration and has an interest rate that stays the same for the 30-year life of the loan.

VA Loan -

A mortgage made by an approved lender and guaranteed by the Department of Veterans Affairs, often with a low down payment.

Information Provided By: Bankrate.com

Home | About | Featured Home | Listings | Mortgage Calculator | Contact| Login
©Copyright 2005 - 2012. Kathy Dyson Realty LLC, Abbeville, LA . All Rights Reserved.
Licensed in Louisiana USA.
Site Design by Efficient Technologies