Buy A Home Buying a home can be easy with Traditions Mortgage, A Division of ACNB Bank.

Fixed-Rate Mortgages

For home buyers who want a steady, predictable interest rate for the life of the loan.

A fixed-rate loan or mortgage is one in which the interest rate remains constant throughout the maturation (or life) of your loan. This is ideal when interest rates are low and you plan on owning the property or holding the loan for more than two or three years. 

• Ease of Planning: Because fixed-rate loans offer consistent interest rates, you can always plan ahead for your mortgage expenses since the payment amount will be the same each month.
• Security and Stability: Interest rates are currently quite low but that can change quickly. With a fixed-rate mortgage, you can rest assured that your payments won’t fluctuate with the changing economic climate.

Adjustable-Rate Mortgages

Traditions Mortgage offers a wide range of adjustable-rate mortgages with interest rates that are fixed for periods of one, three, five, seven or 10 years. Annual caps and lifetime caps protect the borrower from large interest rate adjustments.

• Anticipated Increase in Income: While fixed-rate mortgages provide the certainty of a consistent interest rate, they often come with a higher rate than that of the initial ARM rate. If you are forecasting an increase in income, an adjustable-rate mortgage provides you with lower payments now and potential increases in rates when you may be better equipped to manage them.
• Desire to Move in the Near Future: Generally speaking, a fixed-rate mortgage is ideal for borrowers who have found a home they intend to keep until their loan is paid-in-full. If you don’t plan on holding the loan or staying in the property for very long, an adjustable-rate mortgage may be best suited for you since initial interest rates are often lower.
• A Yearning for Flexibility: There are many factors to consider when choosing which mortgage product is right for you. An important one is the economic climate and how it’s expected to change over the life of your loan. If forecasts predict lower rates, an ARM may be ideal. Remember, always review loan options with a trusted financial advisor or one of our local Mortgage Loan Officers before making a decision.

Buydown Mortgages

An effective way for borrowers who want to lower their monthly mortgage payment in the short term or expect their income to increase over time.

A buydown mortgage allows you to receive a lower interest rate for at least the first few years of the mortgage, or possibly its entire life. The borrower pays an upfront fee to reduce the interest rate on their loan, which is paid in the form of points – a percentage of the loan amount. For example, a borrower might pay two points (2% of the loan amount) to reduce their interest rate by 1% for the first three years of their mortgage.

• Lower Monthly Payments: By paying points to reduce the interest rate on their loan, borrowers can lower their monthly mortgage payments. This can be especially helpful in freeing up some extra cash each month.
• Increased Buying Power: By reducing their monthly mortgage payments, borrowers may be able to qualify for a larger loan, allowing them to purchase a more expensive home.
• Fixed Rate: Buydown mortgages are typically available in fixed-rate form, which means the interest rate and monthly payments will remain the same throughout the term of the loan. This is a good option for borrowers who want the stability of a fixed-rate mortgage, with short-term financial relief.