Fixed vs. Adjustable Mortgage Interest Rates
Whether you are looking to refinance your mortgage or buy your first home, it's important to compare all available loan options. Interest rates are a big part of the mortgage equation. The two basic types are
- Fixed rate mortgage
- Adjustable rate mortgage (ARM)
Fixed Rate Mortgages
For a closed-end conventional loan with a fixed rate, interest rates remain the same for the life of the loan. This means payments will remain the same, too. A fixed rate mortgage is
- Secure and Predictable You will not be exposed to increasing interest rates.
- Higher Cost in the Short Term The interest rate for a fixed rate loan is typically higher than the initial interest rate for a adjustable rate loan
- Good for Long-Term Ownership In the long run, the interest rate on an adjustable rate mortgage can exceed that of a fixed rate loan
You could reduce the monthly payments on your fixed rate mortgage over time with Pay Right Rewards,§ our rate reduction program.
Adjustable Rate Mortgages
Good for Short-Term Ownership Plan to sell your home before the adjustable rate kicks in? Benefit from the lower initial fixed rate.
Good for Short-Term Ownership Plan to sell your home before the adjustable rate kicks in? Benefit from the lower initial fixed rate.
Good When Market Rates Fall Are you confident the index will go down in the future? If so, an ARM could give you a low interest rate in the future.
Request a Home Loan
We are proud to offer sensible loans for homeowners. We have been doing so for more than 100 years. And we are right in your neighborhood.
An experienced account executive ready to discuss your options will contact you within two business days.
Fixed vs. Adjustable Mortgage Interest Rates
Whether you are looking to refinance your mortgage or buy your first home, it's important to compare all available loan options. Interest rates are a big part of the mortgage equation. The two basic types are
- Fixed rate mortgage
- Adjustable rate mortgage (ARM)
Fixed Rate Mortgages
For a closed-end conventional loan with a fixed rate, interest rates remain the same for the life of the loan. This means payments will remain the same, too. A fixed rate mortgage is
- Secure and Predictable You will not be exposed to increasing interest rates.
- Higher Cost in the Short Term The interest rate for a fixed rate loan is typically higher than the initial interest rate for a adjustable rate loan
- Good for Long-Term Ownership In the long run, the interest rate on an adjustable rate mortgage can exceed that of a fixed rate loan
You could reduce the monthly payments on your fixed rate mortgage over time with Pay Right Rewards,§ our rate reduction program.
Adjustable Rate Mortgages
Good for Short-Term Ownership Plan to sell your home before the adjustable rate kicks in? Benefit from the lower initial fixed rate.
Good for Short-Term Ownership Plan to sell your home before the adjustable rate kicks in? Benefit from the lower initial fixed rate.
Good When Market Rates Fall Are you confident the index will go down in the future? If so, an ARM could give you a low interest rate in the future.
Request a Home Loan
We are proud to offer sensible loans for homeowners. We have been doing so for more than 100 years. And we are right in your neighborhood.
An experienced account executive ready to discuss your options will contact you within two business days.
