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Mortgage Options

Buying a home is a great investment and one of the most important financial decisions you will make. Work with one of our mortgage specialists to find what option is best for you.

Fixed-Rate vs. Adjustable-Rate Mortgages

Financing options are available for both fixed-rate and adjustable-rate mortgages. Here are some of the key features for each.

Your interest rate will be locked in for the life of your loan, no matter how rates change. This gives you the advantage of knowing exactly how much your monthly principal and interest payment will be. The only varience you may see to your payments would be from changes for taxes and insurance.


The initial interest rate on an adjustable-rate mortgage (ARM) is generally lower than of a fixed-rate loan. However, with an ARM, the interest rate may increase or decrease in the future, and the size of your payments will go up or down along with the rate.

Most ARMs are hybrids, meaning the interest rate is fixed for a certain number of years after which the rate begins to float. The most common ARMs fix the initial rate for three, five or seven years. ARMs are most appropriate for people who have sufficient financial resources to handle potential payment increases or know that they plan to sell their home around the time the loan’s interest rate is set to change.

If you are considering an ARM, be sure you know:

  • What is the adjustment period (the time between interest rate changes)?
  • What index is used to determine interest rate?
  • Does the introductory rate differ from the normal rate?
  • What is the margin (the percentage added to the index rate each time your loan is adjusted)?
  • What is the period adjustment cap?
  • What is the lifetime adjustment cap?

Fixed Rate Mortgage Options

These are the most common mortgages for financing. Although they all offer fixed-rate financing, there are several key differences.

A conventional mortgage is a home loan that is not guaranteed or insured by the federal government. It is a contract between the lender and the borrower, where the lender is at risk. The property is security, and the lender can take it for nonpayment. Conventional mortgages usually require larger down payments than FHA or VA loans. To help protect the lender from loss, you may be required to pay mortgage insurance on the loan.

An FHA loan is a mortgage that is insured by the Federal Housing Administration. FHA loans are common among first time buyers because they can be done with a down payment as low at 3.5%. To protect the lenders from loss, FHA mortgages do require the borrower to carry mortgage insurance throughout the life of the loan.

The federal agency will guarantee the mortgages offered by private lenders to qualified members of the armed forces, active military personnel, veterans or their widows. In some cases, one can buy a home on a VA loan with no down payment.

Sandia First is a specialty in house mortgage for those who are purchasing or financing a home with more than 25% equity. This mortgage offers low rates, fewer fees, and a quick and simple closing process. Learn more about Sandia First here.

A loan with special terms for properties of very high value that fall outside typical lending standards.

Refinance Loan

Sandia Area offers flexible refinancing options to fit your needs. Some reason to refinance may include

  • Lowering your rate
  • Shortening your term
  • Getting cash out of your home

Refinance Today ►




Prefer to Speak With a Mortgage Specialist?

Our experienced Mortgage Specialist will work with you to help you find the mortgage solution that fits your needs. Please fill out the form below, or call Tami Wilkinson at 505-292-6343 ext 1950.

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    Sandia Area is an Equal Housing Lender. Sandia Area Membership required. Sandia Area Federal Credit Union does not currently provide financing for manfactured homes. Sandia Area Federal Credit Union (NMLS#561268) provides mortgage loans by partnership with Member's First Mortgage. This is not an offer to extend consumer credit as defined by Section 1026.2 of Regulation Z.