Fixed rate loans have two distinct features.  First, the interest rate remains fixed for the life of the loan.  Secondly, The payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term.

The easiest fixed-rate loan to qualify for, the 30-year mortgage gives you an excellent opportunity to keep your mortgage payments reasonable by making monthly payments over a long period of time.  This mortgage loan may be ideal if you plan to remain in your home for years and wish to keep your houseing expense ow and use any extra cash for other purposes.  This loan also provides maximum interest deduction for tax purposes.

The most common fixed rate loans are 15 year and 30 year mortgages.  Many borrowers are anxious to repay their mortgage sooner than 15 years.  10 and 20 year fully amortizing fixed rate mortgages are offered as a method to quickly re-pay your mortgage debt.  An alternative strategy to the shorter term fixed rate loans is to obtain a 30 year mortgage term and make regular extra principal payments.  These extra principal payments will help reduce the loan amount and reduce the term of the loan in a much more accelerated fashion.

With an adjustable-rate mortgage (ARM), the interest rate you pay is adjusted from time to time to keep it in line with changing market rates.  This means that when interest rates go up, your monthly mortgage payments may go up as well. On the other hand, when interest rates go down, your monthly mortgage payments may go down.

ARMS are attractive because they may initially offer a lower interest rate than fixed rate mortgages. Since the monthly payments on an ARM start out lower than a fixed rate mortgage of the same amount, you can theoretically qualify for a larger loan. The chief concern is that your monthly payments may increase when the interest rates go up.

You may want to consider an ARM if you:

• Expect your income to rise significantly in the coming years
• Plan to move in a few years and are not concerned about rate increases
• Want to maximize your buying power
• Want to keep your payments lower during the first few years of your loan

The Federal Housing Administration(FHA) is a federal agency within the U.S. Department of Housing and Urban Development(HUD). FHA's primary objective is to assist in providing housing opportunities for low to moderate-income families. FHA has both single family (1-4 unit homes) and multi-family (5 or more units) mortgage lending programs. The agency does not generally provide the funds for the mortgages, but rather insures home mortgage loans made by private industry lenders such as mortgage bankers, savings & loans and banks.

The U.S. Department of Veterans' Affairs was established 52 years ago with the passage of the original GI Bill in 1944. Included in the many provisions of that bill was a program to assist returning World War II veterans with the purchase of a new home. The program has been expanded from time to time to include other veterans since then. The VA has assisted nearly 300,000 loans to veterans since that time.

If you are an eligible U.S. Veteran, you can purchase a home without a down payment, thanks to the federal government's Veterans Administration mortgage loan program.

If you're ready to build a home, we've got the loan to assist you with your financing.  Just contact one of our loan officers to get you pre-approved for your long term financing at 801-260-7600 option 5.  We will then refer your loan to one of our construction loan officers for construction financing approval.  To reach a construction loan officer directly for further details on our program requirements you can call Danielle at 260-7600 ext 5531 or Royce at 5332.

A reverse mortgage is a loan that enables older homeowners (62 or older) to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment.  For more information, contact Dave Kimball at 260-7600 ext 5314, Amy Conlin at 260-7600 ext 5315 or Bryce Anderson at 260-7600 ext. 5313.