Rates
The interest rate is the amount you are charged for borrowing money, shown as a percentage of the total amount of the loan.
Mortgage Calculator
Fixed Rate
A home loan option with a specific interest rate for the entire term of the loan.
Adjustable Arm
. With an ARM, the initial interest rate is fixed for a period of time. After that, the interest rate applied on the outstanding balance resets periodically, at yearly or even monthly intervals.
Interest Only
A loan in which the borrower pays only the interest for some or all of the term, with the principal balance unchanged during the interest-only period.
What is a Refinance, Heloc, and Heloan?
Rate and Term
With a rate and term refinance you can change your current interest rate, loan term (length of the mortgage), or both.
Ex. 6.5% to 5.5% and/or 30 year to a 15 year term
Cash-out Refinance
With a cash-out refinance you can take some of the equity (what your home is worth vs. your mortgage on the property) out of your home.
HELOC
A home equity line of Credit (HELOC), is a line of credit secured by your home. It gives you a revolving credit line (against your equity), that works similar to a credit card. Can be used to consolidate debt, home improvements, etc.
HELOAN
A HELOAN is similar to a HELOC. You will receive a second mortage on your home using the equity, however it is at a fixed rate, a fixed loan amount, and fixed payment. This loan operates more like an auto loan where as you receive a lump sum of money with a permanent fixed loan and payment over a term.
