Current Mortgage Rates.
Please call or email us for information on current mortgage rates and other loan programs.
Types of Mortgages
Capital Family Mortgage offers a wide range of competitively priced loans. More importantly, our experienced loan specialists are ready to help you find the best loan to fit your particular situation. Within the three basic types of loans (Fixed Mortgages, Adjustable Rate Mortgages and Balloons) Capital Family Mortgage offers dozens of different loan programs. Together, we will consider using a variety of loan features such as convertibility, caps, points and many others to structure a loan especially for you.
Fixed Rate Mortgages
The interest rate on a fixed rate mortgage remains constant throughout the life of the loan. Your principal and interest payment will remain the same so you can plan your budget easily. Your rate is protected if the market rate goes up.
30, 20, 15 and 10 year fixed rate mortgages are the most common.
Adjustable Rate Mortgages (ARM’s)
If you are looking for the lowest initial interest rate possible, an ARM may be the best loan for you. Typically, ARM’s begin with a low initial rate. At predetermined intervals, the interest rate changes to conform to the current market rates. The monthly payment changes accordingly. All ARM loans have “caps” which limit how much the interest rate may change per interval and over the life of the loan.
Some ARM’s may offer a fixed rate conversion feature. The convertible option gives the borrower a one-time option to change their loan from an adjustable rate to a fixed rate.
Adjustable Rate Mortgages have payments that adjust periodically to the Index the ARM is based on – plus a specified margin. 1 year, 3/1, 5/1, 7/1 and 10/1 are the most common types of ARM’s available. (EX: A 5/1 ARM is fixed for the first 5 years and then becomes a 1 year ARM and adjusts each year thereafter).
Balloon or Extendable Loans
Balloon loans generally offer the lowest fixed rates available; they are popular with borrowers who do not intend to stay in their home for more than a few years. Monthly payments are amortized over 30 years, however, at the end of the 5 or 7-year term, when the balloon matures, the borrower would need to pay off the loan or refinance.
Some balloon loans have features that allow borrowers to convert the mortgage at the end of the balloon period to a fully amortizing loan based upon the outstanding principal balance and the current interest rate. For example, at the end of a 7-year balloon loan term, the mortgage will convert to a 23 year fixed mortgage based on the current interest rate; at the end of the 23 years, the loan will be paid in full.