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Manufacturing in the Philadelphia region continued to deteriorate in November as reported by the Philadelphia Federal Reserve Bank. The Philly Fed diffusion index fell to negative 39.3 in November from negative 37.5 in October....
Fixed Rate Loans—An excellent way to lock into a low interest rate for the life of your loan.
Adjustable Rate Mortgages (ARMs)—The flexible loan, with lower initial rates and payments.
Initial Fixed Rate Loan—Start with a rate generally lower than standard fixed rate loans.
30 Year Fixed Rate
Appropriate for borrowers who:
Loan Parameters
•
Plan to live in the property over 10 years
•
Like total payment stability
•
Interest rate & monthly payment remain the same for 30 years
15 Year Fixed Rate
Appropriate for borrowers who:
Loan Parameters
•
Plan on staying in property over 10-15 years
•
Want to pay off property faster than 30 years
•
Lower interest rate than 30 year loan
•
Interest rate & monthly payment remain the same for 15 years
10/1 Year semi-fixed
Appropriate for borrowers who:
Loan Parameters
•
Plan to live in property approximately 10 to 12 years
•
Like initial payment stability; can accept interest rate change later
•
Interest rate & monthly payment fixed for the first 10 years
•
Starting the 11th year, interest rate adjusted every year, therefore, payment is subject to change every year for remainder of loan
7/23 (2-Step) or '30/7 + 23'
Appropriate for borrowers who:
Loan Parameters
•
Plan to live in property approximately 7 to 8 years
•
Can handle one payment adjustment
•
Interest rate & monthly payment fixed for the first 7 years
•
Conversion option: On the 8th year, interest rate adjusted to reflect prevailing fixed interest rates. Resulting payment will remain the same for remainder of loan
7/1 Year semi-fixed rate
Appropriate for borrowers who:
Loan Parameters
•
Plan to live in property approximately 7 to 8 years
•
Like initial payment stabilityand can handle change later
•
Interest rate & monthly payment fixed for the first 7 years
•
Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan
5/25 (2-Step) or '30/5 + 25'
Appropriate for borrowers who:
Loan Parameters
•
Plan to live in property approximately 5 to 6 years
•
Can handle one payment adjustment
•
Interest rate & monthly payment remain fixed for the first 5 years
•
Conversion option: On the 6th year, interest rate adjusted to reflect prevailing fixed interest rates. Resulting payment will remain the same for remainder of loan
5/5 & 5/1 Year semi-fixed rate
Appropriate for borrowers who:
Loan Parameters
•
Plan to live in property approximately 5 to 6 years
•
Like initial payment stability, can accept later changes
•
Interest rate & monthly payment remain fixed for the first 5 years
•
Starting the 6th year, interest rate adjusted every 5 years(for 5/5 ARM) and every year (for 5/1 ARM)
3/3 & 3/1 Year semi-fixed
Appropriate for borrowers who:
Loan Parameters
•
Plan to live in property 3 years or less
•
Like initial payment stability, can accept later changes
•
Interest rate & monthly payment remain fixed for the first 3 years
•
Starting 4th year, interest rate adjusted every 3 years (for 3/3 ARM) and every year (for 3/1 ARM)
Adjustable rate loans
Appropriate for borrowers who:
Loan Parameters
•
Want to take advantage of lowest rate possible
•
Are willing to accept yearly payment changes OR
•
Cannot qualify at higher rate programs
•
Interest rate adjusted every year, so monthly payment is subject to change every year for entire 30 year loan term
•
Potential higher payments (at maximum interest rate)
Home Mortgage Exchange
369 W. Main Street Suite E
Alhambra, CA 91801
Phone (626) 281-3400
Fax (626) 281-3410
