A fixed rate loan's interest rate does not change so your interest and principal payment remain the same for the life of the loan. This gives you the comfort of knowing how much that payment will be.
An adjustable rate loan allows for the rate on the loan to periodically change based on the adjustment period you choose. This choice often is based on how long you plan to live in the home or your financial situation. For example, a 3/1 year adjustable rate loan has an initial rate fixed for the first 3 years and then the rate will change every year thereafter. Typically, adjustable rate loans have lower initial rates than fixed rate loans.
Our Interest First loan enables borrowers to make interest-only payments for the first few years of the loan, followed by a fully amortizing period. This loan helps borrowers who need to initially delay making principal payments. Interest First loans contain a variable rate feature which could materially change your monthly payment. You must weigh the advantages of making interest only payments and delaying your principal payments.
All loans are subject to credit approval.
