When choosing between an adjustable rate mortgage (ARM) or fixed rate, it’s important to understand how they work and what your needs are. Meet Matt and The Dawsons and see what choice they made.
Matt relocates frequently for work.
Matt enjoys the lower initial interest rate.
The Dawsons love the area where they live and found their dream home.
The Dawsons prefer the predictability of long-term, stable payments.
How long am I going to stay in my home?
If you don’t plan to stay in your home for a long time you may want to consider an ARM, which typically has a lower initial interest rate than a fixed rate and you may save money in interest charges. The money you save could be put toward retirement, paying off debt, building an emergency fund, and more.
What can I afford?
Knowing how much you can afford to pay month to month in mortgage payments will also help you decide between an ARM or fixed-rate mortgage.
Looking for an investment property?
Investment property can be used to provide income or supplement it. Whether you're considering buying a property to lease out, renovate and lease or simply to hold for a few years, a balloon mortgages might be just the right option for you.
Investment Property Mortgage
|Rates as low as1||APR as low as1||Principal and Interest**|
1Rates are based on evaluation of credit history, loan-to-value, and loan term, so your rate may differ. Rates subject to change at any time.
**This payment example assumes a loan with points, a loan amount of $ and an estimated property value of $143,000. Payments shown do not include taxes or insurance escrows; actual payments may be greater. Note: this is a 10-year fixed rate mortgage amortized over 30 years with the balance due and payable in full at the time of maturity. Loan matures in 10 years; you may apply to refinance the balloon payment ($ in this example) at maturity.
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