Fixed vs Adjustable

 What Mortgage Loan Is Right For Me?

One of the first choices a homebuyer will need to make is whether you want a fixed-rate or an adjustable-rate mortgage loan. The bulk of loans will fit into one of these two categories, however, there is a third option that will allow you to “hybrid” the two.

What is a Fixed vs Adjustable Loan Program?

An adjustable-rate mortgage, (ARM): The interest rate of the mortgage adjusts periodically based on market conditions. For example, your payment will go up if rates go up and go down if rates go down. Fixed-rate Mortgage: Unlike an adjustable-rate mortgage the interest rate is set at the time you take out the loan and will not change. Fixed-rate home loans can be 10 years, 15 years, 20 years or 30 years fixed. 30-year fixed is the most common because it allows your mortgage payment to be the lowest. Hybrid ARM: Features an initial fixed interest rate for a certain amount of time and then becomes an adjustable-rate for the remainder of the term. Standard terms are 3, 5, 7, or 10 yrs.

Working with a Qualified Lender

Ransom Kelly is a Loan Officer in the Birmingham office of Assurance Financial. He has over 8 years experience in the mortgage industry. Ransom joined Assurance Financial because of the great operations team that delivers a quick closing, every time.

Ransom offers a personal touch with honesty and openness from the prequalification to the closing table. He builds lasting relationships with his clients and enjoys catching up as the years pass and clients turn their new house purchase into “home sweet home.” Contact Ransom Kelly today at (205) 624-0484!

types of loan programs fixed vs adjustable