Fixed or Adjustable Home Loans - Saint Louis and Kansas City Mortgage Specialist

What are the advantages and disadvantages of Fixed Rate and Adjustable Rate Mortgages?

Most home loans fall into one of two general categories: fixed-rate mortgages and adjustable rate mortgages (ARMs).

Fixed-rate mortgages have interest rates that stay the same for the entire loan term.

• You will have predictable monthly payments throughout the life of the loan.
• You'll be protected from rising rates.
• Fixed-rate loans can be a good refinance option when rates are low.

Adjustable-rate mortgages have interest rates that adjust periodically based on market conditions.

• The initial rate is fixed for an introductory period (usually one to ten years), and is typically lower than for a fixed-rate mortgage.
• After that the rate adjusts annually or semi-annually depending on the product and based on a market index, but can't go above a predetermined adjustment cap.

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Mortgage Rates as of 7/31/2010 Term Rate APR 30 YR FIXED 4.000 4.134 15 YR FIXED 3.625 3.862 5/1 ARM 3.250 3.788 3/1 ARM 3.250 3.706 Quoted rates are based upon Fannie Mae maximum loan amounts prior to any score, income verification or equity based adjustments. Call today for specifics. Endeavor Capital, LLC D/B/A Homestead Financial Mortgage Kansas Licensed Mortgage Company #2004-4670. State of Illinois Division of Banking Department of Financial and Professional Regulation Illinois License # MB.0006030

 

To the staff at the Homestead office in Kansas

I just wanted to thank you all for helping me to get the debt consolidation loan I needed. I appreciate that my business was kept private. Before I had filled out the online application, I was seriously thinking about bankruptcy. I didn’t see another way out until my friend reminded me that my home was an asset and I could use it to obtain a loan to get rid of my debt. I was happy she told me and recommended that I use your services. As a single working mother of 3 boys, I appreciate that your office made this process simple for me to do. I feel like I can finally breath again and have a clean slate to start saving again.

Thank you,

Lucia P.
Leawood, KS