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Conventional Loans

Conventional loans either have fixed or adjustable rates.

Conventional Adjustable-Rate Mortgages

Adjustable-rate mortgages (ARMs) have an interest rate that will change periodically depending on shifts in a corresponding financial index that’s associated with the loan. Generally, when the rate changes, your monthly payment will increase if rates go up and decrease if rates fall.

Details

Features

  • Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 3, 5, or 7 years, then adjust periodically.
  • Loans available for 30-year amortization schedules.
  • Interest rate caps set a limit on how high your interest rate can go.
  • You may be able to add extra features such as interest-only payments.

Benefits

  • Typically ARMs have a lower initial interest rate than on a fixed-rate mortgage.
  • The interest rate cap limits the maximum amount your P&I payment may increase at each interest rate adjustment and over the life of the loan.
  • May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years.

Considerations

  • Monthly principal and interest payments may increase when the interest rate adjusts.
  • Your monthly principal and interest payments may change every year after the initial fixed period is over.
Terms

First Bank offers a wide range of ARM products. Our most popular ARM products include:

  • 3/3 ARMs: a fixed rate for three years, an adjustment, and then change every three years.
  • 5/1 ARMs: a fixed rate for five years, an adjustment, and then change annually thereafter.
  • 7/1 ARMs: a fixed rate for seven years, an adjustment, and then change annually thereafter.
Apply Online

Applying for a First Bank mortgage is fast, easy, and secure. Before you begin, have the following information on hand:

Financial Information

  • Income
  • Assets
  • Expenses

Property Information

  • Estimated purchase price and down payment amount (if buying), or
  • Estimated property value and loan amount (if refinancing)

Conventional Fixed-Rate Mortgages

A fixed-rate mortgage offers a straightforward, predictable monthly payment. With fixed-rate mortgages, your interest rate—and your total monthly payment of principal and interest—will stay the same for the entire term of the loan. That predictability makes it easier to set your budget.

Details

Features

  • Your interest rate and monthly principal and interest (P&I) payments remain the same for the life of your loan.
  • Available in a variety of loan term options.

Benefits

  • Predictable monthly P&I payments allow you to budget more easily.
  • Protection from rising interest rates for the life of the loan, no matter how high interest rates go.
  • May be a good choice if you plan to stay in your home for a long time.

Considerations

  • The overall interest you pay is higher on a longer-term loan than on a shorter-term loan.
  • On a shorter-term loan, the monthly P&I payment is typically higher than on a longer-term loan.
  • Small extra principal payments every month will shorten the term of your loan and build equity faster.
Terms

30-year fixed-rate mortgage

The 30-year fixed-rate mortgage is one of the most popular mortgages. Many people like the fixed interest rate and lower monthly payments.But since the term of the loan is long, you’ll pay more interest over the life of the loan than you would on a shorter-term mortgage, and you’ll build equity more slowly.

20-year fixed-rate mortgage

A 20-year fixed-rate mortgage helps you pay off your home faster and build equity more quickly than longer-term fixed-rate mortgages.This type of mortgage generally has a lower interest rate than longer-term home loans but higher monthly payments.

15-year fixed-rate mortgage

You generally pay a lower interest rate with a 15-year fixed-rate mortgage than you would for longer-term fixed-rate mortgage loans. You will pay less interest than you would with a longer-term loan and build equity more quickly.However, your monthly payments will be higher for a 15-year fixed-rate mortgage than they would be on a longer-term mortgage.
Apply Online

Applying for a First Bank mortgage is fast, easy, and secure. Before you begin, have the following information on hand:

Financial Information

  • Income
  • Assets
  • Expenses

Property Information

  • Estimated purchase price and down payment amount (if buying), or
  • Estimated property value and loan amount (if refinancing)
 
Loans subject to credit approval.

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