Fixed rate programs normally offer terms of 10, 15, 20, 25, and 30 years. With 1st Eagle Mortgage, you also have the option of tailoring your mortgage to the exact number of years that make sense for you. As an example, you could have a mortgage that’s amortized (paid off) in 23 years or any number between 10 and 30. While a shorter term (say 15 rather than 30) will pay off your mortgage sooner, the payment will be higher and may not make sense for you.
Adjustable Rate Mortgages (ARMs) are 30 year loans with a fixed period of 5, 7, or 10 years. In all cases these loans are amortized over 30 years. These loans offer lower interest rates and may be best for you if you plan on selling your home in the next 5 or 6 years. After the fixed period, the interest rate can change based on the loan margin (generally 2.25%) plus the index. Most ARMs use the LIBOR (London Interbank offering rate) as their index. For information about current rates and historical LIBOR numbers call 847-441-4116 and speak to one of our loan specialists.