Fixed and Adjustable Rate Mortgages

FHA, VA and Conventional loans all can be either fixed rate or adjustable rate.  HomeStreet Bank offers FHA and VA loans as fixed rate loans, VA 3/1 ARMs and FHA One Year, 3/1 and 5/1 ARMs.  Conventional loans have a wide variety of fixed rate, adjustable rate, and even interest-only options.  Consult with a HomeStreet Loan Officer for the right loan program for you.

Fixed-Rate Mortgages

Fixed rate loans are very popular and are the most conservative loans available.  Fixed rate loans are available for various terms – you can pick the one that suits you best.  A fixed rate means that your principal and interest payment won’t change for as long as you have the loan.  If your payments include reserves for taxes and insurance, they may adjust year to year, due to fluctuations in your tax and insurance rates.

Adjustable-Rate Mortgages (ARMs)

ARMs (Adjustable-Rate Mortgages) appeal to some borrowers who plan to be in their homes for only a few years, who anticipate significant pay increases, or who believe that interest rates will trend down over the next few years.  An ARM can often help you qualify for a larger loan than a fixed rate mortgage.

Popular ARMs currently have their payments fixed for an initial period of between one and ten years.  Adjustments may be made every year after the initial period, with the new rate based on an index and margin.  Most ARMs provided by HomeStreet Bank use the LIBOR index.  ARMs have interest rate caps, per adjustment and lifetime.  For further details on HomeStreet Bank’s adjustable rate mortgages, talk to a HomeStreet Loan Officer, or check out our online resources.