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Mortgage Rates 101: Information You Should Know

Homebuying 2 min read

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Acquiring information about mortgage rates is a vital step in the home buying process. Mortgage rates vary based on several factors, such as the amount and type of your loan and your credit score. To get better mortgage rates in your area, it’s best to contact your local lender like First Bank.

First Bank’s Mortgage Center provides customers with answers to common questions about loan options, mortgage rates information, and more. Whether you are a first-time homebuyer, an experienced homebuyer, or building a new home, we provide information that can help you qualify for the loan and purchase your new home.

Mortgage Rates Information from First Bank

You will typically have multiple loan options to choose from before purchasing a home, including conventional mortgages, government loans, and construction loans. Two of the most popular types of home loans are conventional adjustable-rate and fixed-rate mortgages.

Conventional adjustable-rate mortgages:

  • Interest rate, monthly principal, and interest payments remain the same for an initial period of 3, 5, or 7 years, for example—then adjust periodically.
  • Interest rate caps set a limit on how much your interest rate can increase.
  • ARMs typically have a lower initial interest rate than fixed-rate mortgages.
  • Monthly principal and interest payments may increase as the rate adjusts.

Conventional fixed-rate mortgages:

  • Interest rate and monthly payments stay the same for the duration of the loan.
  • Offers protection from rising interest rates for life of the loan.
  • Available in 15-year, 20-year, and 30-year fixed-rate loan term options.

For more information on conventional mortgage rates or mortgage rates on our other home loan options, find your local First Bank loan officer today.

Loans subject to credit approval.

———

Sources:

Investopedia: http://www.investopedia.com/terms/c/credit_score.asp

Investopedia: http://www.investopedia.com/articles/pf/05/022405.asp?lgl=mtdt-v1

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