Educational Resources

Why PrimeLending?

You need mortgage professionals you can trust. You need a company that values honesty and integrity throughout the entire organization. You need mortgage planning specialists who give you their best consistently. You need to find strength, stability and opportunity—especially now. You need PrimeLending!

When dealing with your home financing, we are not only working with one of your largest personal financial investments; we also are handling one of your biggest dreams. Since we work with matters so close to the heart, we serve you from ours.

With the ability to originate and close loans in 50 states and with over 200 branch locations nationwide, PrimeLending can meet you where you are and help you where you are going. Let us provide you a mortgage without obstacles.

Fixed and Adjustable Rate Mortgages

The differences between fixed rate and adjustable rate mortgages can be found in their names. With a fixed rate mortgage, your monthly mortgage payments stay the same since they are set with an interest rate that does not change for the life of the loan. The rate of on an adjustable rate mortgage is designed to change with the movements of the market index to which it is linked.

More specifically with an adjustable rate mortgage, interest rates are initially lower for a set period (ranging from 1 to 10 years) than those of fixed rates loans. You can find that this will help save you money at the beginning and also can assist you in qualifying for a more expensive home. However, after the initial set interest rate period, you may find your interest rates rising—causing your monthly payments to increase as well. At that point, the amount of your payments is determined by the direction, up or down, of the market index. ‘Rate caps’ are established to put a limit on how high or low your rates can go.

Deciding What Is Best For You

When trying to determine if you should go with a fixed or adjustable rate mortgage, it basically comes down to how long you plan to own the home.

If your plans are to own the home for seven years or more, then a fixed rate mortgage might be the best choice for you. This plan will provide you with established and predictable monthly mortgage payments. Likewise, the fixed rate also will protect you against your payments rising with rising rates. If lower rates should happen to prevail in the market during the life of your loan, you can choose to refinance your mortgage.

If your plans are to own your home for less than seven years, you might find an adjustable rate mortgage is a better fit. With low rates established for a set initial period, you can save money towards the start of the life of the loan. After that beginning term, however, rates adjust to reflect market changes. If you own your home longer than the initial term, your monthly mortgage payments my increase with these adjustments.