A fixed rate mortgage offers an interest rate that stays the same for the term of the loan. This means the principal and interest payments on your loan will stay the same until your loan is paid off. If you have a tax and insurance escrow account with your mortgage loan the escrow portion of your payment may fluctuate based on property taxes and homeowners insurance. There are no prepayment penalties with our fixed rate loans. Currently Cincinnatus offers fixed rate mortgages for any term up to 30 years.

30 Year Amortization
15/30 Balloon Fixed Rate Mortgage Loan

Cincinnatus offers a 15/30 balloon fixed rate mortgage loan that amortizes payments over a 30 year period. The balloon loan works as follows. The initial interest rate is fixed for the first 15 years, at the end of the 15th year the remaining loan balance can be either paid in full, or the term can be extended for an additional 15 years after which, the loan will be paid in full. If you choose to extend the loan, the new interest rate is fixed for the remaining term, and the new rate can't be any higher or lower than 5% above or below your original note rate. The new interest rate is based on a current index plus margin, which can be found in the Wall Street Journal. As with all Cincinnatus first mortgage loans there is no prepayment penalty. We have found most borrowers keep a loan only 7 or 8 years, so this has become a very popular program.

Adjustable Rate Mortgage Loan

Cincinnatus also offers a 1-year adjustable rate mortgage. This loan can have any term up to 30 years. As the name suggests the interest rate can be changed on a yearly basis. The maximum the interest rate can change per year is 2% higher or lower than the initial interest rate, the maximum that the interest rate can change over the life of the loan is 6% higher or lower than the initial interest rate. The initial interest rate on the adjustable rate loan is generally lower than a 30 year fixed rate loan. The lower interest rate means a lower payment, which can help you qualify for higher loan amount to help you buy the home you want. As with all our other first mortgage loan products this loan has no prepayment penalty.

For more information call us at (513) 661-6903 or toll free at (877) 661-6903 or e-mail us at Loans@Cincinnatussl.com.


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