Mortgages in Virginia Beach, Mortgages in Norfolk – Mortgages anywhere in Hampton Roads! If you aren’t yet familiar with mortgages and lenders, here’s a crash course.
Traditional 15- or 30-Year Fixed-Rate Mortgage
This type of mortgage loan usually has a 15- or 30-year payoff (amortization) schedule. Over the years, you make equal payments that are applied to the interest and principal in varying proportions until you completely pay off the loan. The interest rate does not change.
15- or 30-year Adjustable-Rate Mortgage (ARM)
The ARM is declining in popularity as a result of better fixed-interest rates with traditional mortgage programs. However, sometimes a new homebuyer will want or need to purchase a home that is more expensive than what he or she can afford at the time of the purchase. ARMs, which come with low introductory interest rates that are almost always locked-in for the first five years, can be a good option. After the introductory period, the interest rate becomes variable and may drop or skyrocket, changing throughout the life of the loan according to a pre-defined time schedule and market interest rates.
If you would like help identifying which type is best for you, feel free to contact us!
