Menu Show Menu Show Menu
Types of Loans
  • Fixed Rate Loans—An excellent way to lock into a low interest rate for the life of your loan.

     
  • Adjustable Rate Mortgages (ARM's)—The flexible loan, with lower initial rates and payments.

     
  • Initial Fixed Rate Loan—Start with a rate generally lower than standard fixed rate loans.
30 Year Fixed Rate
Borrower Goals Loan Parameters
• Plan to live in the property over 10 years
• Like total payment stability
• Interest rate & monthly payment remain the same for 30 years
 
15 Year Fixed Rate
Borrower Goals Loan Parameters
• Plan on staying in property over 10-15 years
• Want to pay off property faster than 30 years
• Lower interest rate than 30 year loan
• Interest rate & monthly payment remain the same for 15 years
 
10/1 Year semi-fixed
Borrower Goals Loan Parameters
• Plan to live in property approximately 10 to 12 years
• Like initial payment stability, can accept interest rate change later
• Interest rate & monthly payment fixed for the first 10 years
• Starting the 11th year, interest rate adjusted every year, so payment is subject to change every year for remainder of loan
 
7/23 (2-Step) or '30/7 + 23'
Borrower Goals Loan Parameters
• Plan to live in property approximately 7 to 8 years
• Can tolerate one payment adjustment
• Interest rate & monthly payment fixed for the first 7 years
• Conversion option: On the 8th year, interest rate adjusted to reflect prevailing fixed interest rates, resulting payment will remain the same for remainder of loan
 
7/1 Year semi-fixed rate
Borrower Goals Loan Parameters
• Plan to live in property approximately 7 to 8 years
• Like initial payment stability, can accept change later
• Interest rate & monthly payment fixed for the first 7 years
• Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan
 
5/25 (2-Step) or '30/5 + 25'
Borrower Goals Loan Parameters
• Plan to live in property approximately 5 to 6 years
• Can tolerate one payment adjustment
• Interest rate & monthly payment remain fixed for the first 5 years
• Conversion option: On the 6th year, interest rate adjusted to reflect prevailing fixed interest rates, resulting payment will remain the same for remainder of loan
 
5/5 & 5/1 Year semi-fixed rate
Borrower Goals Loan Parameters
• Plan to live in property approximately 5 to 6 years
• Like initial payment stability, can accept later changes
• Interest rate & monthly payment remain fixed for the first 5 years
• Starting the 6th year, interest rate adjusted every 5 years(for 5/5 ARM) and every year (for 5/1 ARM)
 
3/3 & 3/1 Year semi-fixed
Borrower Goals Loan Parameters
• Plan to live in property 3 years or less
• Like initial payment stability, can accept later changes
• Interest rate & monthly payment remain fixed for the first 3 years
• Starting 4th year, interest rate adjusted every 3 years (for 3/3 ARM) and every year (for 3/1 ARM)
 
Adjustable rate loans
Borrower Goals Loan Parameters
• Want to take advantage of lowest rate possible
• Are willing to accept yearly payment changes OR
• Cannot qualify at higher rate programs
• Interest rate adjusted every year, so monthly payment is subject to change every year for entire 30 year loan term
• Potential higher payments (at maximum interest rate)
Ryan S. Busse photo
Ryan S. Busse
Broker/REALTOR®
956-536-0389
View Profile
 
Gilbert Galvan photo
Gilbert Galvan
Agent/REALTOR®
956-873-3419
View Profile
 
Stephanie Green photo
Stephanie Green
Agent/REALTOR®
956-410-4873
View Profile
 
Michelle De Hoyos photo
Michelle De Hoyos
Agent/REALTOR®
956 -238-7503
View Profile
 
Moriah Tellez photo
Moriah Tellez
Agent/REALTOR®
956-225-4718
View Profile
 
Leo Yzaguirre photo
Leo Yzaguirre
Agent/REALTOR®
956-451-4679
View Profile