Types of Mortgages

Fixed Rate Mortgages
Features:: The interest rate on a fixed rate mortgage remains constant over the life of the loan.
Your monthly principal and interest payment will always remain the same through the term of the loan.

    Benefits:
Fixed rate mortgages are especially suited for those who expect to remain in their homes for a number of years.

You can provide a down payment as low as 5% on the purchase price.

    Advantages:
Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; Your monthly principal and interest payment will always remain the same through the term of the loan.

    Benefits:
Fixed rate mortgages are especially suited for those who expect to remain in their homes for a number of years.

You can provide a down payment as low as 5% on the purchase price.

    Advantages:
Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Benefits:: Fixed rate mortgages are especially suited for those who expect to remain in their homes for a number of years.

You can provide a down payment as low as 5% on the purchase price.

    Advantages:
Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; You can provide a down payment as low as 5% on the purchase price.

    Advantages:
Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Advantages:: Your mortgage payment is unaffected if interest rates in the general market go up.
Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; Your monthly payments are set, so you can more easily budget your finances.
View current mortgage rates

Adjustable Rate Mortgages (ARMs)
    Feature:
An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Adjustable Rate Mortgages (ARMs)
Feature:: An interest rate that fluctuates over time.
    Benefit:
Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Benefit:: Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others.
    Advantages:
The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Advantages:: The interest rate you pay will generally drop if prevailing interest rates go down.
Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; Low start rates can reduce your initial payments.
View current mortgage rates

Balloon Mortgages
    Feature:

Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
    Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
    Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Balloon Mortgages
Feature:: Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years.
Benefit:
At the end of the 7 years, you can pay off the mortgage or apply to refinance.
Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Benefit:: At the end of the 7 years, you can pay off the mortgage or apply to refinance.
Advantages:
Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.
Advantages:: Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable.
If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.; If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider.

With expanded tax credits and a variety of financing options from FAIRWINDS, including FHA and Conventional loans, your new home is right around the corner.

Learn more about FAIRWINDS financing options.

Apply Now



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	Mortgage Center: Types of Mortgages Fixed Rate Mortgages Features: The interest rate on a fixed rate mortgage remains constant over the life of the loan. Your monthly principal and interest payment will always remain the same through the term of the loan. Benefits: Fixed rate mortgages are especially suited for those who expect to remain in their homes for a number of years. You can provide a down payment as low as 5% on the purchase price. Advantages: Your mortgage payment is unaffected if interest rates in the general market go up. Your monthly payments are set, so you can more easily budget your finances. View current mortgage rates Adjustable Rate Mortgages (ARMs) Feature: An interest rate that fluctuates over time. Benefit: Generally, the initial interest rate is lower than that of a fixed rate mortgage. The lender bases its calculations on the index and margin of the mortgage. The index is a base rate that the lender adds to the margin at each adjustment period to determine a new interest rate. Be sure to check the type of index your mortgage lender is using, because some fluctuate more than others. Advantages: The interest rate you pay will generally drop if prevailing interest rates go down. Low start rates can reduce your initial payments. View current mortgage rates Balloon Mortgages Feature: Principal and interest payment remain constant for the term of a balloon mortgage which is usually 7 years, although principal and interest are amortized over 30 years. Benefit: At the end of the 7 years, you can pay off the mortgage or apply to refinance. Advantages: Balloon mortgages are typically offered at lower interest rates than other fixed rate products, making them more affordable. If you know you'll be in your home for less than the term of the mortgage, this may be the product you should consider. With expanded tax credits and a variety of financing options from FAIRWINDS, including FHA and Conventional loans, your new home is right around the corner. Learn more about FAIRWINDS financing options. Apply Now
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