Pittsburgh Mortgages

15 Year Fixed Rate
Description: This loan carries a fixed rate and payment for 15 years.	To Consider: Fixed rate mortgages generally carry a higher rate than adjustable rate mortgages. If interest rates fall, you will only receive a lower rate if you refinance the loan. Also, by amortizing your loan over 15 years, you are obligating yourself to a larger payment.
Benefits: Your payment will not change for the duration of your loan, even if interest rates rise. By paying off your loan over 15 years, instead of 30, you will build equity in your home at a much faster rate. 15 year loans also offer rates significantly lower than 30 year loans.

Flex Pay Option ARM
Description: This loan offers a super-low introductory rate and payment. The interest rate adjusts monthly, but the payments are based on the introductory rate for the first year. After that, the minimum required payment will increase 7.5% per year for next four years.	To Consider: Although this loan offers a low payment, the interest rate is adjustable after the introductory term. Depending on the actual rate and your payment choice, this loan has the potential for negative amortization. This means that your balance may increase over time, rather than decrease, if your minimum payment does not exceed the amount of interest due.
Benefits: This product gives you the flexibility of up to three different payment options to meet your monthly financial needs. Each month your options may include a fully amortizing payment, an interest-only payment or the minimum payment, which is initially based on the low 1% introductory rate.

3/1 ARM
Description: This loan has a fixed rate and payment for the first 3 years. After that, the rate and payment adjusts annually. During the adjustable portion of the loan, the rate increase or decrease is capped each year. Also, there is a lifetime cap that sets a maximum limit for the rate over the term of the loan.	To Consider: If you retain your property and do not refinance this loan before 3 years, you are subject to the adjustable rate. Depending on the interest rate environment at that time, your rate and payment may increase significantly.
Benefits: Your rate and payment for this loan is generally less than for a fixed rate mortgage. If you anticipate rates to fall in the future, or if you intend to sell or refinance the property within 3 years, this may be a desirable loan to select.