The types of loans offered by First Choice Loan Services include the 30-year, fixed-rate mortgage; 15-year, fixed-rate mortgage; hybrid adjustable rate mortgages or ARM; and 2/1 buy-down mortgage, according to the official company website. Other loans the firm offers are the annual ARM and monthly ARM.
The 30-year, fixed-rate mortgage features a fixed interest rate and monthly payments, explains First Choice Loan Services. Individuals who intend to stay in their homes for at least seven years typically get this loan. The 15-year, fixed-rate mortgage involves higher monthly payments, although it offers a lower interest rate than a 30-year loan. People who cannot commit to higher monthly payments may opt to get a 30-year loan and occasionally make bigger payments to pay off the loan in a shorter period of time.
The hybrid ARM loans offer both lower interest rates and a constant monthly payment that spans a longer period than traditional adjustable-rate loans, says First Choice Loan Services. For instance, a 5/1 loan offers a constant interest rate and monthly payment for the initial five years and changes into a typical adjustable-rate loan for 25 years.
The 2/1 buy-down mortgage enables people to borrow more by letting them qualify at below-market rates, states First Choice Loan Services. Lenders recalculate the interest rate once a year in annual ARMs, whereas they recalculate the rates on a monthly basis in monthly ARMs.