Mike Vigil, Loan officer Miami, FL

Fixed Rate Loans—An excellent way to lock into a low interest rate for the life of your loan.
Adjustable Rate Mortgages (ARMs)—The flexible loan, with lower initial rates and payments.
Initial Fixed Rate Loan—Start with a rate generally lower than standard fixed rate loans.

30 Year Fixed Rate

Appropriate for borrowers who:

Loan Parameters

•	Plan to live in the property over 10 years
•	Like total payment stability

•	Interest rate & monthly payment remain the same for 30 years

15 Year Fixed Rate

Appropriate for borrowers who:

Loan Parameters

•	Plan on staying in property over 10-15 years
•	Want to pay off property faster than 30 years
•	Lower interest rate than 30 year loan

•	Interest rate & monthly payment remain the same for 15 years

10/1 Year semi-fixed

Appropriate for borrowers who:

Loan Parameters

•	Plan to live in property approximately 10 to 12 years
•	Like initial payment stability; can accept interest rate change later

•	Interest rate & monthly payment fixed for the first 10 years
•	Starting the 11th year, interest rate adjusted every year, therefore, payment is subject to change every year for remainder of loan

7/23 (2-Step) or '30/7 + 23'

Appropriate for borrowers who:

Loan Parameters

•	Plan to live in property approximately 7 to 8 years
•	Can handle one payment adjustment

•	Interest rate & monthly payment fixed for the first 7 years
•	Conversion option: On the 8th year, interest rate adjusted to reflect prevailing fixed interest rates. Resulting payment will remain the same for remainder of loan

7/1 Year semi-fixed rate

Appropriate for borrowers who:

Loan Parameters

•	Plan to live in property approximately 7 to 8 years
•	Like initial payment stabilityand can handle change later

•	Interest rate & monthly payment fixed for the first 7 years
•	Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan

5/25 (2-Step) or '30/5 + 25'

Appropriate for borrowers who:

Loan Parameters

•	Plan to live in property approximately 5 to 6 years
•	Can handle one payment adjustment

•	Interest rate & monthly payment remain fixed for the first 5 years
•	Conversion option: On the 6th year, interest rate adjusted to reflect prevailing fixed interest rates. Resulting payment will remain the same for remainder of loan

5/5 & 5/1 Year semi-fixed rate

Appropriate for borrowers who:

Loan Parameters

•	Plan to live in property approximately 5 to 6 years
•	Like initial payment stability, can accept later changes

•	Interest rate & monthly payment remain fixed for the first 5 years
•	Starting the 6th year, interest rate adjusted every 5 years(for 5/5 ARM) and every year (for 5/1 ARM)

3/3 & 3/1 Year semi-fixed

Appropriate for borrowers who:

Loan Parameters

•	Plan to live in property 3 years or less
•	Like initial payment stability, can accept later changes

•	Interest rate & monthly payment remain fixed for the first 3 years
•	Starting 4th year, interest rate adjusted every 3 years (for 3/3 ARM) and every year (for 3/1 ARM)

Adjustable rate loans

Appropriate for borrowers who:

Loan Parameters

•	Want to take advantage of lowest rate possible
•	Are willing to accept yearly payment changes OR
•	Cannot qualify at higher rate programs

•	Interest rate adjusted every year, so monthly payment is subject to change every year for entire 30 year loan term
•	Potential higher payments (at maximum interest rate)

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