Fixed-Rate Security and Mortgage Payment Stability
A fixed-rate mortgage has an interest rate that won't change for the life of your loan. Usually that's 30 years, but it can also be 10, 15, 20, or 25 years. It's the best security against rising mortgage rates and higher payments. If you know you don't plan on moving or refinancing in the next 10 years or so, the fixed-rate mortgage may be your best choice. Rates on fixed-rate mortgages are currently at or near historic lows. This means your mortgage payment starts low and stays there. You can choose the term that's right for you - the shorter your term, the less interest you'll pay. No matter how long you finance your mortgage, you'll have the peace of mind in knowing what your payment is, so you can plan your budget. If you don't have a full (20%) down payment, you can still get the security of a low, fixed payment. You can put as little as 5% down on a fixed-rate mortgage. Need to refinance? A fixed-rate mortgage is a great way to refinance up to 95% of your home value. Or, refinance up to 90% to take cash out – pay down debt that doesn't offer tax incentives.
Use Low Adjustable Mortgage Rates to Your Advantage
An adjustable-rate mortgage (ARM) is a mortgage that has a rate that's fixed for the first several years of the loan (at Quicken Loans that's 3, 5 or 7 years) and then adjusts up or down according to financial markets. Get a lower monthly payment than a fixed-rate loan. Adjustable-rate mortgages have lower rates, giving you more money to work with each month. The average homeowner moves every 7 to 9 years, so why get a 30-year mortgage? Get a lower monthly payment and get only the financing you need. Don’t pay extra for 30 years of security when you only need 3, 5 or 7 years. Choose an interest-only option to get an even lower monthly mortgage payment. Each month, you choose whether or not to pay principal on your loan for the first 10 years of the loan. Pay some of the principal, and you’ll see next month’s interest payment go down, too! Adjustable rate mortgages have many options. We can customize a mortgage to match your situation. Let the mortgage experts do the work.