Are you willing to take a bit of risk in hopes of having a lower interest rate? Or, would you prefer the safety of locking into a fixed rate? These, and many other questions will come to mind as you research the various types of mortgages.
Fixed Interest Rate
You're locked into a monthly payment amount that will remain constant throughout the life of the mortgage. Even if interest rates rise or fall, you'll
always pay the same fixed amount. But keep in mind that property insurance and taxes may be added onto your mortgage payment, which will often result in changes to your payment amounts each year.
Adjustable Rate Mortgage (ARM)
The interest rate will rise and fall based on a financial index. Lenders typically offer an introductory rate that is lower than rates offered on a
fixed-rate loan. Your lender should provide you with a written statement indicating how often the rate will change and the index on which the changes are based.
Hybrid ARM
For the first five to 10 years of your mortgage, you'll have a fixed rate. After that, your mortgage will convert to an adjustable rate for the remainder of the term.
If you'd like a lower interest rate - and are planning to stay in your home for at least five years - consider paying additional points at the time
of your closing. Points may be paid at closing, in exchange for a lower interest rate throughout the term of your loan.
Mortgages from HSBC
Whatever you're looking for in a mortgage, you'll find it at HSBC. We offer many attractive and affordable mortgage options.
To find out more about mortgages from HSBC, you can click here or talk to one of our HSBC representatives at 1-800-537-8705. You can also drop by your local HSBC Mortgage Corporation (USA) office.
Mortgages offered by HSBC Mortgage Corporation (USA), a wholly owned subsidiary of HSBC Bank USA, N.A..
