What Types of Loans Does First Choice Loan Services Offer?

What Types of Loans Does First Choice Loan Services Offer?

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.