Capstone takes the worries out of financing your new home by providing a loan that suits your specific requirements.  Whether you’re buying, building or refinancing, Capstone has a home loan program that’s just right for you.

This chart provides information on the most common mortgage programs.  Please contact Capstone to determine which loan program best fits your needs.

Loan Program	Description	Benefits	Drawbacks
30-year fixed rate	30-year term mortgage (monthly payment & interest rate stay constant over the loan life).	Payment never changes over the life of the loan.	Higher interest rate than most other programs.
15-year fixed rate	15-year term mortgage (monthly payment & interest rate stay constant over loan life).	Interest rate is lower than a 30-year fixed rate and payments never change over loan life).	Since the mortgage is paid off twice as fast as a 30-year fixed rate mortgage, payments are significantly higher.
10-year adjustable (ARM)	Interest rate stays constant for 10 years, then fluctuates based on market conditions.	Lower interest rate than 30-year fixed rate.	Rate can change after 10-year fixed rate period.
7-year adjustable (ARM)	Interest rate stays constant for 7 years, then fluctuates based on market conditions.	Lower interest rate than 30-year fixed rate and 10-year ARM.	Rate can change after 7-year fixed rate period.
5-year adjustable (ARM)	The interest rate stays constant for 5 years, then can change based on market conditions.	Lower interest rate than the 30-year fixed rate, 10-year ARM, and 7-year ARM.	Rate can change after the 5-year fixed rate period.
3-year adjustable (ARM)	The interest rate stays constant for 3 years, then can change based on market conditions.	Lower interest rate than the 30-year fixed rate, 10-year ARM, 7-year ARM, and 5-year adjustable.	Rate can change after the 3-year fixed rate period.
1-year adjustable (ARM)	Interest rate stays constant for 1 year, then fluctuates based on market conditions.	Lower interest rate than the 30-year fixed rate, 10-year ARM, 7-year ARM, 5-year ARM, and 3-year ARM.	Rate can change after 1-year fixed rate period.
Interest-only Option	Only required to pay interest on the loan. Typically available on 5/1 and 7/1 adjustable (ARM) mortgages.	Payments are lower because you don’t have to pay principal.  You can make principal payments at any time; and when you do, your required monthly payment will be lowered accordingly.	If paying only interest every month, you will still owe the same amount that you initially borrowed.  This loan program requires more equity than other programs.
Balloon Mortgage	Loan is amortized over a longer period (usually 30 years) but entire principal balance must be paid off after a certain number of years (usually 5 or 7 years)	Interest rates can be lower than a fixed rate mortgage.	This is considered a risky loan since the entire principal is due at the end of the loan term.

Capstone takes the worries out of financing your new home by providing a loan that suits your specific requirements.  Whether you’re buying, building or refinancing, Capstone has a home loan program that’s just right for you.

This chart provides information on the most common mortgage programs.  Please contact Capstone to determine which loan program best fits your needs.

Loan Program	Description	Benefits	Drawbacks
30-year fixed rate	30-year term mortgage (monthly payment & interest rate stay constant over the loan life).	Payment never changes over the life of the loan.	Higher interest rate than most other programs.
15-year fixed rate	15-year term mortgage (monthly payment & interest rate stay constant over loan life).	Interest rate is lower than a 30-year fixed rate and payments never change over loan life).	Since the mortgage is paid off twice as fast as a 30-year fixed rate mortgage, payments are significantly higher.
10-year adjustable (ARM)	Interest rate stays constant for 10 years, then fluctuates based on market conditions.	Lower interest rate than 30-year fixed rate.	Rate can change after 10-year fixed rate period.
7-year adjustable (ARM)	Interest rate stays constant for 7 years, then fluctuates based on market conditions.	Lower interest rate than 30-year fixed rate and 10-year ARM.	Rate can change after 7-year fixed rate period.
5-year adjustable (ARM)	The interest rate stays constant for 5 years, then can change based on market conditions.	Lower interest rate than the 30-year fixed rate, 10-year ARM, and 7-year ARM.	Rate can change after the 5-year fixed rate period.
3-year adjustable (ARM)	The interest rate stays constant for 3 years, then can change based on market conditions.	Lower interest rate than the 30-year fixed rate, 10-year ARM, 7-year ARM, and 5-year adjustable.	Rate can change after the 3-year fixed rate period.
1-year adjustable (ARM)	Interest rate stays constant for 1 year, then fluctuates based on market conditions.	Lower interest rate than the 30-year fixed rate, 10-year ARM, 7-year ARM, 5-year ARM, and 3-year ARM.	Rate can change after 1-year fixed rate period.
Interest-only Option	Only required to pay interest on the loan. Typically available on 5/1 and 7/1 adjustable (ARM) mortgages.	Payments are lower because you don’t have to pay principal.  You can make principal payments at any time; and when you do, your required monthly payment will be lowered accordingly.	If paying only interest every month, you will still owe the same amount that you initially borrowed.  This loan program requires more equity than other programs.
Balloon Mortgage	Loan is amortized over a longer period (usually 30 years) but entire principal balance must be paid off after a certain number of years (usually 5 or 7 years)	Interest rates can be lower than a fixed rate mortgage.	This is considered a risky loan since the entire principal is due at the end of the loan term.