Monthly payments are fixed over the life of the loan
Interest rate does not change
Protected if rates go up
May be able to refinance if rates go down
Higher interest rate
Higher mortgage payments
Rate does not drop if interest rates improve
Adjustable Rate Mortgages
10/1 ARM
7/1 ARM
5/1 ARM
Lower initial monthly payment
Lower payment over a shorter period of time
Rates and payments may go down if rates improve
More risk
Payments may increase over time
Potential for high payments if rates go up
First Time Buyer Programs
Lower down payment
May qualify for down payment assistance programs
May be subject to income and property value limitations
Some programs which have government subsidies may have a recapture tax if you sell the house too early.
Subject to borrower and property qualification. All loan products and terms are subject to change
without notice. This is not an offer for an extension of credit or a commitment to lend.
Provident Savings Bank, F.S.B.
