Traditional Mortgage Loans

When buying a home, members are faced with a number of choices including: rates, terms and options. DuTrac’s expert real estate lending staff provide sound advice and can help make selecting the right loan for your financing needs easier.

Fixed Rate Conventional Mortgages

A fixed rate loan is a loan with a rate that is locked in, which means your principal and interest payments remain the same for the entire life of the loan. This is a terrific loan if you are planning on staying in your home long term or if you are not comfortable with an adjustable rate of interest – a rate that can change over time.

A Fixed Rate Conventional Loan offers:

  • A low down payment
  • A low, fixed interest rate

Adjustable Rate Mortgages  (ARM)

What is an ARM? “ARM” stands for Adjustable Rate Mortgage. With this type of loan, the rate is locked in for three, five, or seven years and then adjusts once a year thereafter. Your rate can adjust up or down depending on the limits of your loan’s terms and its position in the market. These loans are great for buyers who want to lock in a low rate for a set number of years. Members with ARMs, may chose to refinance (pay off the existing loan with a new loan, especially if the interest rate is lower) at any time.

The advantages of an ARM include:

  • A low down payment
  • A low, fixed interest rate for a set number of years

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