Conventional loans Florida is an excellent option for those who want a predictable monthly payment and don't need the extra features that come with other types of mortgages. 1st Florida Mortgage offers a variety of mortgage products, including adjustable-rate and fixed-rate conventional loans.
The first is the 30-year fixed-rate, which provides a stable monthly payment for thirty years with an interest rate that never changes. A fixed-rate mortgage allows the borrower to lock in a specific interest rate for the life of the loan, which can be helpful in budgeting and planning for the future.
As with most amortized loans, the initial payments of your loan are primarily devoted to paying off the interest on the loan. This type of loan would be suitable for someone who knows their income will increase or decrease significantly over time or who wants stability in their monthly payment.
A fixed-rate mortgage will have the same interest rate for the entire loan duration. This makes budgeting and planning for payments much easier, as there will be no sudden spikes in interest rates.
Adjustable-rate mortgages are a great fit for homebuyers who plan to sell or refinance their homes between 3-10 years or looking for the lowest possible mortgage rate available. In addition, this type of home financing is perfect for those who want to adjust their payments based on changes in the market and has no prepayment penalties to help them save money.
With an arm, you have time before your monthly payment adjusts, so it's important to keep in mind how often your income changes and any future plans of selling the property may change the terms of this loan agreement.
At our Florida mortgage company, With an adjustable-rate loan, you'll enjoy the stability of a fixed interest rate for a set period of time. However, your interest rate will adjust occasionally based on current market conditions.
Contact us today to learn more about our adjustable-rate conventional loans and how we can help you get into your dream home!
