Enjoy the power of fixed and the flexibility of adjustable. Start with fixed rates for lower monthly payments and more borrowing power, then move to an adjustable rate. It’s a great way to get the home you want.
10/30/2020 Adjustable-rate mortgage rates
Note that down payment is not included in the calculation.
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Frequently Asked Questions
An adjustable rate mortgage is a popular choice for those who plan to own their home for a shorter period of time. You pay a fixed, lower interest rate for a set number of years, and then transition to an adjustable rate that may rise or fall over the life of your loan. You can secure annual and lifetime interest rate caps with Webster, and we’ll provide pre-determined rate change dates for the life of the loan so you know what to expect.
Points provide a way for you to lower the interest rate, and in turn lower your monthly mortgage payment. One mortgage point is equal to 1% of your mortgage amount. For example, on a $200,000 loan, one mortgage point is equal to $2,000. You can pay 1 point, or $2,000, at closing in exchange for a lower interest rate over the life of your loan.
Your APR, or annual percentage rate, reflects your interest rate plus any fees that you pay to obtain your loan. Your interest rate is simply the annual cost of your loan expressed as a percentage. This doesn’t factor in the fees you paid to originally obtain your loan.
A conforming mortgage is the mortgage loan limit set by Fannie Mae and Freddie Mac. For single family properties in most counties, the conforming limit is $510,400 and any mortgage loan amount of more than $510,400 is a jumbo mortgage.