TYPES OF LOANS

There’s a range of mortgage choices available for home purchases.  Some offer monthly payments that are set for the life of the mortgage, while others feature smaller initial monthly payments that will fluctuate with interest rate changes.  Your choice in financing will depend on your unique set of circumstances.  To help you make an informed decision, we’ll make sure you understand the best option for your current situation.

Special Home Loan Financing

The Peoples Mortgage Services offers government-sponsored home ownership incentive programs.  These special financing options are designed to lower your interest rate, down payment amount and/or closing costs. 

• Federal Housing Association (FHA) Loans – These loans offer the benefit of a low, 3-5% down payment.  Sometimes, closing costs can be included in the loan amount to further reduce up-fronts costs.

 FIXED AND ADJUSTABLE RATE 

• Fixed-Rate Mortgage – This type of financing features an interest rate that is set for the life of the loan, offering predictable monthly payments.  This kind of loan usually has a higher interest rate than an adjustable-rate mortgage.

• Adjustable-Rate Mortgage (ARM) – ARMs normally start with an interest rate that’s lower than fixed-rate mortgages.  But the interest rate (and your monthly loan payment) will move up or down, according to market conditions.  Most ARMs have interest rate caps both annually and over the life of the loan to help prevent dramatic changes in rates.