SF Fire Credit Union

Whether you’re in the market to purchase a new property – or preparing to refinance an existing one – it’s always good to understand the choices that may present themselves.

Fixed Rate

Looking for some stability in your loan? Maintain the original interest rate throughout the entire life of the loan in 40-, 30-, 20- and 15-year terms.

This ‘traditional’ type of loan maintains its original interest rate throughout the entire life of the loan. Therefore, fluctuations in market rates over the term of the loan won’t have any impact on the loan payment.

Typically, interest rates on shorter term fixed-rate mortgages are lower than their longer term counterparts.

Adjustable Rate

Get a loan where the initial interest rate is set for 3, 5, 7 or 10 years. With lower than standard fixed rates, your initial payments will be lower and adjust later.

We also offer a 50-year loan, fixed for the first 10 years, with as little as 10% down with no Private Mortgage Insurance requirement.

Unlike a fixed-rate mortgage, adjustable-rate mortgages are subject to rate adjustments during the life of the loan. Because of this, they have lower initial interest rates than fixed-rate mortgages.

The lower rates (and the accompanying lower monthly payment) can help the borrower qualify for a higher loan amount. Typically, interest rates on adjustable-rate mortgages with shorter initial fixed-rate periods are lower than their longer initial fixed-rate period counterparts.

Balloon

Qualify for a larger home loan with a lower payment that results from having your payments amortized over 50 years.

The rate is fixed for 10 years, but the loan must be paid-off or refinanced after 10 years.

Plus, there are no lender points for primary residences.

Interest Only

Similar to a traditional adjustable rate mortgage (ARM), except interest-only payments provide even lower payments and purchasing power. Available with fixed rates for initial 3, 5 or 10 years.

An interest-only loan results in even lower monthly payments than a traditional adjustable rate mortgage, as the borrower is not required to apply payment towards the principal on the loan.

This loan can be attractive to first-time home buyers due to low monthly payments, but should only be considered for properties in real estate markets that are experiencing increases in value.

Typically, interest rates on interest-only adjustable rate mortgages with shorter initial fixed-rate periods are lower than their longer initial fixed rate period counterparts.