Types of Mortgage Loans
• 30 Year Fixed Payments are fixed for 360 months. The interest rate is unchanged throughout the life of the loan.
• 20 Year Fixed Payments are fixed for 240 months. The interest rate is unchanged throughout the life of the loan.
• 15 Year Fixed Payments are fixed for 180 months. The interest rate is unchanged throughout the life of the loan.
• 10/1 or 10/6 Adjustable Rate (ARM) This is a 30 year loan. Payments are fixed for the first ten years (120 payments).
After 10 years, the loan automatically converts to a 1-year or 6-month ARM for the remaining term.
7/1 or 7/6 Adjustable Rate (ARM) This is a 30 year loan. Payments are fixed for the first seven years (84 payments).
After 7 years, the loan automatically converts to a 1-year or 6-month ARM for the remaining term.
5/1 or 5/6 Adjustable Rate (ARM) This is a 30 year loan. Payments are fixed for the first five years (60 payments).
After 5 years, the loan automatically converts to a 1-year or 6-month ARM for the remaining term.
3/1 or 3/6 Adjustable Rate (ARM) This is a 30 year loan. Payments are fixed for the first three years (36 payments).
After 3 years, the loan automatically converts to a 1-year or 6-month ARM for the remaining term.
• 20 Year Fixed Payments are fixed for 240 months. The interest rate is unchanged throughout the life of the loan.
• 15 Year Fixed Payments are fixed for 180 months. The interest rate is unchanged throughout the life of the loan.
• 10/1 or 10/6 Adjustable Rate (ARM) This is a 30 year loan. Payments are fixed for the first ten years (120 payments).
After 10 years, the loan automatically converts to a 1-year or 6-month ARM for the remaining term.
7/1 or 7/6 Adjustable Rate (ARM) This is a 30 year loan. Payments are fixed for the first seven years (84 payments).
After 7 years, the loan automatically converts to a 1-year or 6-month ARM for the remaining term.
5/1 or 5/6 Adjustable Rate (ARM) This is a 30 year loan. Payments are fixed for the first five years (60 payments).
After 5 years, the loan automatically converts to a 1-year or 6-month ARM for the remaining term.
3/1 or 3/6 Adjustable Rate (ARM) This is a 30 year loan. Payments are fixed for the first three years (36 payments).
After 3 years, the loan automatically converts to a 1-year or 6-month ARM for the remaining term.