The interest rate and monthly principal and interest payment remain the same for the life of the loan.  We offer a variety of fixed-rate products: conventional, FHA, and VA in both conforming and jumbo loan amounts, with terms ranging from 10 to 30 years. 

Advantages:

• Predictable payments. The monthly principal and interest payment is fixed over the life of the loan.
• Protection from rising interest rates.  No matter how high the market interest rates go, your mortgage rate remains the same for the life of the loan.

Best for People Who:

• Are buying a home at a time when interest rates are comparatively low.
• Plan to stay in the house they are buying or refinancing for at least seven years.
• Are on limited or fixed incomes.      

Government loans come in two types: FHA loans, which are insured by the Federal Housing Administration, and VA loans, which are guaranteed by the Department of Veterans Affairs.  

FHA Loan Advantages:

• Low Down Payment Requirements.  A minimum of 3.5% down payment required which can be provided to the borrower as a gift from family, employers, church or down payment assistance programs.
• Flexible income, debt and credit requirements.  Alternate sources of income can be used.  Previous derogatory credit history may be excused. 
• Lower Mortgage Insurance Requirements.  The rate for the mortgage insurance is lower than most other loan programs requiring mortgage insurance. 

Best for:

• Homebuyers with limited savings
• Low-to-moderate income families 

VA Loan Advantages:

• No down payment required.
• No Mortgage Insurance Required.  Even with a zero down payment, VA loans do not require mortgage insurance. 
• Flexible income, debt and credit requirements.  Alternate sources of income can be used.  Previous derogatory credit history may be excused.

Best For:

• Qualified veterans, reservists, active servicemen and women and their spouses.
• Eligibile first- or second time homebuyers who have low-to-moderate incomes and/or limited savings. 

Adjustable-rate mortgages feature an interest rate that is fixed for an initial period, then adjusts periodically based on market fluctuations.  First American Mortgage offers a variety of conventional and goverment ARM products in both conforming and jumbo loan amounts. 

Advantages:

• Lower Monthly Payments.  Because the initial interest rate is lower compared to a traditional fixed-rate mortgage, during the early years of this loan you pay less monthly.
• More Buying Power.  Qualification is based on the lower initial monthly payment so you can get a larger loan amount.
• A Variety of Fixed-Period Options.  Depending on the ARM product you choose, the initial fixed-rate period may last for one year (1-year ARM), three years (3/1 ARM), five years (5/1 ARM), seven years (7/1 ARM), or even ten years (10/1 ARM). 

Disadvantages:

• Payments may change over time.
• Potential for higher payments if rates go up.
• Less flexible underwriting. 

Best for People Who:

• Plan to move or refinance within a few years
• Want to save money in the short term
• Need a larger loan amount than they can qualify for with a fixed-rate mortgage