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30 Year Fixed
The 30 Year Fixed is a fully amortized loan (paid off at the end of the
loan period) with a fixed interest rate for 360 monthly payments. The
payments are paid monthly and are due the 1st of each month. The payment
on this loan remains fixed at the original interest rate for the life of
the loan.
15 Year Fixed
The 15 Year Fixed is a fully amortized loan (paid off at the end of the
loan period) with a fixed interest rate for 180 monthly payments. The
payment on this loan remains fixed at the original interest rate for the
life of the loan.
5 Year ARM
The 5 Year ARM (Adjustable Rate Mortgage) is a fixed rate for the first
5 years, and then it converts to an adjustable rate loan that can adjust
every 6 months based on the 6 month LIBOR* index plus a margin. The
total loan term is 30 years.
3 Year ARM
The 3 Year ARM (Adjustable Rate Mortgage) is a fixed rate for the first
3 years, and then it converts to an adjustable rate loan that can adjust
every 6 months based on the 6 month LIBOR* index plus a margin. The
total loan term is 30 years.
*The average of interbank offered rates for 6 month U.S.
dollar-denominated deposits in the London market, as published in The
Wall Street Journal.
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