FIXED-RATE | ADJUSTABLE RATE
Fixed-Rate Home Loan
- Your monthly payments of principal and interest (P&I) remain the same for the life of your loan.
- Various loan terms available from 10 to 30 years.
- Special loan products available for certain borrowers, including first-time homebuyers, those with limited savings and more.
- Locks in your interest rate for the life of your loan.
- Keeps monthly principal and interest payments the same, making it easier to manage your household budget.
- The loan term will play an important role in how much interest you pay during the life of your loan. Use our calculator to see how your monthly payment will change based on the loan term.
- Only the principal and interest part of your payment stays fixed. If your monthly payment includes escrow, your payment will increase as the expenses that are escrowed, typically homeowner's insurance and property taxes increase.
Adjustable-Rate Home Loan
- Your interest rate and monthly payment of principal and interest stay fixed for an initial period, usually 3 or 5 years, then adjust periodically.
- Various loan terms are available from 10 to 30 years.
- Interest rate caps limit how much your interest rate can rise.
- The initial interest rate for an adjustable-rate home loan is typically lower than that of a fixed-rate loan.
- Provides flexibility if you expect to move or refinance within a few years.
- May cost you less in loan and closing costs than a fixed-rate loan.
- Monthly principal and interest payments may increase when the interest rate adjusts.
- If your monthly payment includes escrow, your payment will increase as the expenses that are escrowed, typically homeowner's insurance and property taxes increase. These increases to your monthly payment would be in addition to adjustments in the principal and interest payment resulting from any interest rate changes.