Before you apply for your mortgage loan, use this information as a reference to decide which type of loan may be right for you. Conventional Fixed Rate Loans have a fixed rate and monthly payment for the entire life of the loan. It's easy to budget for this type of loan because your payment will always be the same. The rate on a conventional mortgage loan is generally higher than an adjustable rate mortgage. 1st in service - that's Central Virginia Bank.
Mortgage rates change frequently throughout the day.
Conventional Adjustable Rate Loans usually start with lower rates than conventional loans. We'll let you know how much the rate can be adjusted over the life of the loan, so you'll know from the beginning the absolute maximum amount you would ever have to pay. If you will be moving in a few years, or if you think interest rates will be going down, you'll want to consider an adjustable rate since monthly payments may be lower. FHA Loans offer fixed rates and require a relatively small down payment, and are insured through the Federal Housing Administration. Mortgage rates change frequently throughout the day.