ARM

Features

• The rate can change throughout the loan.

• Loan payment amount will only change once a year

• Payment cap-limits how much the payment can change

• Lifetime cap Limits how high an interest rate can rise.

Benefits

• An ARM takes advantage of fluctuating market conditions.

• If rates decline, customers rate and payment decrease.

• If rates decline from month to month more of the payment goes toward paying off the loan.

• The loan holder knows how much their payment is for 12 months period.

Fixed

Features

• Get a fixed rate for the life of the loan.

• Interest rate is set according to market conditions

• Rate can be decreased by choosing higher points

• Put as little as 3% down.

Benefits

• Fixed rate loans are traditional

• Rate remains the same for the life of the loan.

• Payments stays the same for the life