Mortgage Broker License Number: MB2709

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Types Of Loan Programs Fixed vs Adjustable

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.

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.

Right Trac Financial Group
110 Main Street
Manchester, CT 06042
Phone: (860) 647-7701

Right Trac Financial Group Trac Financial Group, Inc.
Mortgage Broker License Number: MB2709
Licensed in: Connecticut, Maine, Massachusetts, Florida, New York, Rhode Island, Vermont and Licensed by the New Hampshire Banking Department

Equal Housing Lender