Traditional Mortgage
Most mortgages fall into the category of a traditional mortgage, which allows you to buy a home or refinance your current mortgage.
Traditional Mortgage
Most mortgages fall into the category of a traditional mortgage, which allows you to buy a home or refinance your current mortgage.
A traditional mortgage, also known as a conventional mortgage, is the most common type of home loan and helps you buy, refinance, or build your home, a vacation home, a condominium, or an owner-occupied, 1–4 unit family property. Down payment options may be available from as low as 3%.
Traditional mortgages can be:
Talk to your lender about which option makes sense for your home dreams.
Start with Mortgage Pre-Approval
Mortgage pre-approval is a simple application process to determine if you qualify for a mortgage. Your credit and income information are the main factors taken into account. If you do qualify, a pre-approval has many benefits. It will let you know how much house you can afford and show home sellers you are serious about a home purchase.
Basics and Benefits of Adjustable Rate Mortgages (ARM Loans)
Unlike a traditional fixed rate mortgage where the interest rate stays the same for the life of the loan, the interest rate on an ARM loan will adjust. For example, with a 10/1 ARM, the interest rate adjusts after the first ten years of the loan (also known as the initial loan period). In addition to the interest rate adjusting, your payment may increase after the initial period.
Benefits of an ARM loan include:
Merchants offers various ARM loan options, for example a 10/1 or 7/1 ARM. Your lender will help you determine if an ARM loan would be a good fit for your situation and which option may be suitable.
All mortgage loans are subject to credit approval.
* Any future refinance is subject to separate approval at that time.