Fixed or Adjustable Home Loans - Saint Louis and Kansas City Mortgage Specialist

What are the advantages and disadvantages of Fixed Rate and Adjustable Rate Mortgages?

Most home loans fall into one of two general categories: fixed-rate mortgages and adjustable rate mortgages (ARMs).

Fixed-rate mortgages have interest rates that stay the same for the entire loan term.

• You will have predictable monthly payments throughout the life of the loan.
• You'll be protected from rising rates.
• Fixed-rate loans can be a good refinance option when rates are low.

Adjustable-rate mortgages have interest rates that adjust periodically based on market conditions.

• The initial rate is fixed for an introductory period (usually one to ten years), and is typically lower than for a fixed-rate mortgage.
• After that the rate adjusts annually or semi-annually depending on the product and based on a market index, but can't go above a predetermined adjustment cap.

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Mortgage Rates as of 9/6/2010 Term Rate APR 30 YR FIXED 4.000 4.134 15 YR FIXED 3.625 3.862 5/1 ARM 3.250 3.788 3/1 ARM 3.250 3.706 Quoted rates are based upon Fannie Mae maximum loan amounts prior to any score, income verification or equity based adjustments. Call today for specifics. Endeavor Capital, LLC D/B/A Homestead Financial Mortgage Kansas Licensed Mortgage Company #2004-4670. State of Illinois Division of Banking Department of Financial and Professional Regulation Illinois License # MB.0006030

 

I cannot thank Homestead Financial enough. They helped my husband and I to secure a loan or our first house. Their knowledgeable staff helped us to navigate the entire loan process from the beginning to the closing date, and made it all easy for us to do. We got a really good rate and were treated like valued customers – and not just another anonymous set of names and numbers.

Thank you again for all of your help,

Michelle & Matt R.
Creve Coeur, MO