Understanding Our Services

There are a few things you need to look for when you are searching for a mortgage. But one of the most important aspects has to do with the rate on the mortgage. This determines what type of interest you will be paying on your mortgage. This part is huge. We want to be up front with you about all things mortgage. That is why we have laid out a brief description of what each of the rates entails. The rate options are a fixed rate mortgage (FRM) and an adjustable rate mortgage (ARM). Both have advantages, but it is important you find the one that will be right for you.

Fixed Rate Mortgage - This rate is fairly simple. The rate will stay the same during the entire life of the mortgage. This is good because you know what you will be paying, and that will be what you are paying for the loan. At times, you might be paying a bit more than the market rate. But this is good for people who want stability. You will be able to manage your finances better because you know exactly what you will be paying. If you want stability, then a FRM is what you want.

Adjustable Rate Mortgage - This is more of a gamble than a FRM may be. You are not locked into one certain rate. That means that your interest rate will fluctuate over the life of the mortgage. This may work out very well for you. Your rate can actually end up being less than the rate the fixed rate mortgage would be paying. You will get a lower rate right at the beginning, which is always a bonus. But the rate will then rise and fall potentially many times for the remainder of the mortgage. Which is why you may be able to pay less at points then you would with a fixed rate. But it can backfire because you run the risk of paying a higher rate for a majority of the mortgage. But if the gamble is worth the risk to you, an ARM may be just what you are looking for.