A Look at the Different Types of Mortgages

A LOOK AT THE DIFFERENT TYPES OF MORTGAGES FIXED-RATE MORTGAGE OVERVIEW INTEREST RATE is the same for the entire length of the loan MONTHLY PRINCIPAL and interest payments are always the same amount 30-YEAR fixed-rate mortgages are the most common ADVANTAGES You'll never be surprised at your payment amount Protects you from paying more if interest rates rise Ideal for homebuyers with good credit who plan on remaining in one place for a long time ADJUSTABLE-RATE MORTGAGE OVERVIEW INTEREST RATE changes determined by your loan SOME LOANS offer an initial period of fixed-rate interest HYBRID LOANS could have a 3-, 5-, 7-, or 10-year fixed interest rate ADVANTAGES Frequently offers a lower interest rate initially than fixed-rate mortgages If interest rates fall, your monthly payments could fall as well Ideal for homebuyers who anticipate needing to relocate in the near future PROVID ED BY NSWC Federal Credit Union www.nswcfcu.org www.NSWCFCUINFO.ORG SOURCES: http://ww isa.gov/topics/family//homeowners/buyingselling/mortgages/types.shtml http://www.bankrate.com/finance/mortgages/3-types-of-mortgage-loans-for-home-buyers-1.aspx http://www.quickenloans.com/blog/advantages-adjustable-rate-mortgage http://www.realtor.com/home-finance/mortgages/compare-fixed-and-adjustable-mortgage.aspx