Fixed Rate Mortgages

Fixed rate mortgages have a locked interest rate for the entire term of your home loan, which usually ranges from 15 to 30 years.

The downside? If interest rates fall, you’re stuck paying the higher rate (although refinancing is an option.) Conversely, if rates rise, your fixed interest rate protects you from the high costs associated with loans attached to higher interest rates.)

Variable Rate Mortgages

Variable rate mortgages, also known as adjustable rate mortgages (ARMs), are tied to the US Treasury interest rates. Variable mortgages are serviced at Twin River Bank and generally the upfront loan closing costs are lower. If you plan to only own this home a few years then an ARM may be right for you. Also a Twin River Bank ARM loan may be your only loan option until you are able to qualify for a secondary market loan (FannieMae and Freddie Mac guidelines).