Loans
What is the difference between a fixed rate and an adjustable rate loan?
With a fixed rate loan the interest rate and monthly payment of principal and interest remains the same for the duration of the loan. With an adjustable rate loan, the interest rate stays fixed for an initial period, typically 5 to 7 years, and then changes periodically, usually on an annual basis.
How do I know which type of mortgage loan is best for me?
Ultimately, your loan officer can help you choose the type of mortgage loan that is best for you and your family. You may be asked some of the following questions to help determine which type of loan best fits your lifestyle.
- How many years do you expect to live in your new home?
- How important is it to be free of mortgage debt before facing your children's college bills or planning for your own retirement?
- How comfortable are you with the certainty of a fixed mortgage payment versus a payment that can change over time?
What does my mortgage payment include?
Your mortgage payment includes both principal and interest. If your real estate taxes and homeowner's insurance are escrowed, your monthly payment will also include an amount that will be applied to your escrow account.
How much cash will I need to purchase a home?
Normally, saving a 5% down payment plus funds for closing costs is recommended. However, special programs exist to help qualifying homebuyers obtain 100% financing. Review our Low Down Payment Options to learn more.
How do I qualify for a First-Time Homebuyer Grant?
Grants are only available to first-time homebuyers as defined by the FHLBank Topeka. See our First-Time Homebuyer page for more information on this and other mortgage loan options available to first-time homebuyers.
What can I finance with a Home Equity Line of Credit (HELOC)?
You can finance virtually anything with a HELOC.
