GET YOUR FREE CUSTOM RATE QUOTE
Fixed-Rate and Adjustable-Rate Mortgages

These are two of the most popular loan types for buying a home or refinancing your mortgage (including cash-out refinances). Both options are available for conventional conforming loan amounts, jumbo (non-conforming) loan amounts, and FHA or VA programs.

Fixed-Rate Mortgage

Adjustable-Rate Mortgage

Features
  • Your interest rate and monthly principal and interest (P&I) payments remain the same for the life of your loan. 
  • Available in a variety of loan term options. 
  • You may be able to add extra features such as temporary buydowns.
Features
  • Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 5, 7, or 10 years, then adjust annually. 
  • Loans available in a variety of longer terms. 
  • Includes interest rate cap that set a limit on how high your interest rate can go.
Benefits
  • Predictable monthly P&I payments allow you to budget more easily. 
  • Protection from rising interest rates for the life of the loan, no matter how high interest rates go. 
  • May be a good choice if you plan to stay in your home for a long time.
Benefits
  • Typically ARMs have a lower initial interest rate than on a fixed-rate mortgage. 
  • The interest rate cap limits the maximum amount your P&I payment may increase at each interest rate adjustment and over the life of the loan. 
  • May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years.
Considerations
  • The overall interest you pay is higher on a longer-term loan than on a shorter-term loan. 
  • On a shorter-term loan, the monthly P&I payment is typically higher than on a longer-term loan.
Considerations
  • Monthly principal and interest payments may increase when the interest rate adjusts. 
  • Your monthly principal and interest payments may change every year after the initial fixed period is over. 

Talk to a local mortgage expert by phone at (919) 539-9800 or by email at dabarnes@mortgages.mybrb.com