The process of finding and financing a home takes time and effort. Let National Penn's experienced mortgage consultants help you take the guesswork and time out of the financing process. We look forward to helping you finance the home of your dreams!
Fixed rate mortgage
The most common and popular type of mortgage loan. With a fixed rate mortgage, your monthly payment is more stable than other types of mortgages because the interest rate is fixed for as long as you have the loan.
Your monthly payment of principal and interest does not change over the life of the loan, but your total monthly payment can change if it also includes property taxes and insurance (e.g., homeowners, hazard, flood or mortgage insurance), which may increase or decrease.
Adjustable rate mortgage
An adjustable-rate mortgage (ARM) has an interest rate that can change during the life of the loan, with the possibility of both increases and decreases to the interest rate and the amount of the monthly mortgage payment.
ARM interest rates generally remain fixed during an initial period, after which rates adjust periodically such as annually, semi-annually, or monthly according to an index and a margin, each of which is specified in the related mortgage note. Rates are typically capped in terms of the size of the rate adjustment at the first change date (initial cap) and/or subsequent change dates (periodic cap) and the maximum rate over the life of the loan (life-of-loan cap).
Construction to permanent loan
This option is used when you are looking to build your own home. The construction loan is provided first and then is modified to permanent financing.