Fixed-Rate or Adjustable Rate

Park Mortgage provides two main varieties of Conventional Loans.

Fixed-Rate Mortgage

A traditional 30-year Fixed Rate Mortgage features full amortization and is ideal for borrowers looking to put down roots and commit themselves to the community. A 15-year Fixed Rate Mortgage offers the same mortgage amortization, but with a lower interest rate which entails higher monthly payments.

Adjustable Rate Mortgage (ARM)

On the flip side, an Adjustable Rate Mortgage (ARM) is tailored for less-committed borrowers. ARMs generally offer a lower interest rate for the first 5-10 years of a loan before adjusting to a new rate every 12 months. The low-interest rates cater to borrowers who don’t plan on sticking around too long or who plan to pay more each month for a quicker amortization.

​

Hybrid ARMs offer fixed rates for 3-7 years and adjustable rates for the remainder of a 30-year loan. These loans generally feature lower interest rates than their fixed-rate cousins and can be the best choice for people expecting to move or refinance before or shortly after the adjustment.