[ Mortgage Products ]

MORTGAGE RATE TYPES

Mortgage Rates can come in three different forms. The first being a fixed interest rate, which locks in the rate so that your payment is the same for the term of the mortgage. The second and third, variable and adjustable interest rates, are similar in that they are both defined by the Prime Rate. While all lenders have a fixed rate option, not all lenders offer the variable and adjustable, rather subscribing to one or the other.

Fixed Rate

The interest rate is locked in for the duration of the mortgage term. For example, a 5-year fixed-rate mortgage at 3.00% means your payment will stay the same for 5 years.

Variable Rate

The interest rate is attached to the Prime Rate. When the Prime Rate changes, your payment will stay the same, but the pace at which you paying down your mortgage will change.

Adjustable Rate (ARM)

Similar to a variable rate, however, when the Prime Rate changes, your payment amount changes too. At the same time, the pace at which you are paying down your mortgage will remain unchanged.