AmCap Mortgage Has Answers For Your Mortgage Questions

Any initial inquiry into obtaining a mortgage loan must begin with a basic understanding of the different types of mortgage loans available. Only after investigating with a qualified mortgage advisor are you ready to zero in on the mortgage loan type that best suits your needs and goals. Knowing the fundamental differences between "fixed" and "adjustable" rate mortgages is a critical first step. What about LIBOR-indexed ARMs? Should you consider a Jumbo Mortgage?

AmCap Mortgage's Loan Specialists are well-versed in the answers to questions like these. Because loan programs are changing all the time, we encourage every mortgage applicant to personally investigate these and other questions along with a qualified mortgage advisor before deciding on which program best fits their circumstances and goals. For now, here are some of the fundamental basics You must know.

Fixed Rate Mortgages:These loans are typically of the 15, 20 and 30 year variety, and feature a "fixed rate" of interest for the term of the loan. The longer the term, the lower the monthly payment, but shorter terms mean your loan will be repaid in full sooner.

Adjustable Rate Mortgages:These loans feature "fixed rates" for a determined period, some times up to 10 years, but often shorter. At the end of the term, the interest rate "adjusts" on an annual basis to current market rates, which then stay in force for that next one-year period.

Balloon Mortgages:These loans come in the 5-year and 7-year varieties that feature scheduled payments that do not fully amortize the loan. When the loan term expires, any outstanding balance must be paid in a lump sum.

To learn about other mortgage programs, visit our Specialty Mortgage Loans page.