Mortgage Knowledge Center

As the name implies, the interest rate is set and will not change over the life of the mortgage. The monthly payment remains constant throughout the life of the loan enabling the borrower to be confident in the future payments required. Each monthly payment is comprised of interest and principal in which earlier payments go primarily towards interest. As the years go by, more of the payment goes toward the principal. Typical fixed rate mortgages range anywhere between 15 years and 30 years. The length of the term of the loan can have an effect on the monthly payment.  

With an adjustable rate mortgage, the interest rate and monthly payments can change with the market index. Typically the rate is initially fixed for an agreed amount of time, and then can be re-adjusted each year thereafter. The benefit to the borrower is that usually ARMs have interest rates that are typically lower than the rates on fixed rate mortgages. ARMs are traditionally suited for homeowners that are looking at short-term ownership, or moving into another home within the next 5 to 7 years.

A jumbo mortgage is for a loan that exceeds $726,200. Jumbo mortgage terms at Forcht Bank can be customized to fit your needs.

VA mortgages are available to qualifying veterans of the Armed Services, those currently in active duty or in the Reserves, and widows and widowers of veterans. These mortgages are specifically for veterans and current members of the military and offer certain features because they are government-insured.

These are short term mortgages that are typically written as a fixed rate mortgage. Most balloon mortgages have a low initial interest rate, and a shorter term of 5 to 7 years. Balloon mortgages are typically ideal for those who will be living in the home for a short period of time or for people who expect an increase in income in the near future.

A Federal Housing Administration (FHA) mortgage is a loan that is government-insured and backed by the FHA. This type of mortgage is ideal for some first-time home buyers because it typically requires a smaller down payment than traditional mortgages.

USDA/Rural Housing Mortgages are geared toward home buyers who live in rural areas and who have low-to-moderate income and no down payment. This allows borrowers to finance 100% of the purchase price.

A Construction Loan is used to finance the building or construction of a new home or building. These loans can be tailored to meet your financial needs.