Oro Valley Homes for Sale - Fixed or Adjustable Rate Loans

Fixed and adjustable-rate mortgages are two of the most popular loan types for buying a home.
Fixed-rate mortgage
Your interest rate and monthly principal and interest payments remain the same for the life of your loan
Available in a variety of loan term options
Predictable monthly payments allow you to budget more easily
Protection from rising interest rates for the life of the loan, no matter how high interest rates go
May be a good choice if you plan to stay in your home for a long time
The overall interest you pay is higher on a longer-term loan than on a shorter-term loan
On a shorter-term loan, the monthly P&I payment is typically higher than on a longer-term loan
Adjustable-rate mortgage
Your interest rate and monthly principal and interest payments remain the same for an initial period of 3, 5, 7, or 10 years, then adjust annually
Includes an interest rate cap that limits how high your interest rate can go
Typically ARMs have a lower initial interest rate than on a fixed-rate mortgage
The interest rate cap limits the maximum amount your payment may increase at each interest rate adjustment and over the life of the loan
May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years
Monthly principal and interest payments may increase when the interest rate adjusts
Your monthly principal and interest payments may change every year after the initial fixed period.