Conventional Loans - Delmar Mortgage

Conventional Loans

Fixed Rate Mortgage


Your interest rate and monthly principal and interest (P&I) payments remain the same for the life of your loan. Available in a variety of loan term options.


  • Predictable monthly principal and interest payments allow you to budget more easily.
  • Protection from rising interest rates for the life of the loan, no matter how high interest rates go.
  • May be a good choice if you plan to stay in your home for a long time.


  • The overall interest you pay is higher on a longer-term loan than on a shorter-term loan.
  • On a shorter-term loan, the monthly P&I payment is typically higher than on a longer-term loan.

Adjustable Rate Mortgage (ARM)


Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 5, 7 or 10 years, then adjust annually.

Loans available in a variety of longer terms.

Includes an interest rate cap that sets a limit on how high your interest rate can go.


  • Typically ARMs have a lower initial interest rate than a fixed-rate mortgage.
  • The interest rate cap limits the maximum amount your P&I payment may increase at each interest rate adjustment and over the life of the loan.
  • May provide flexibility if you expect further income growth or if you plan to move or refinance within a few years.


  • Monthly principal and interest payments may increase (or decrease) when the interest rate adjusts.
  • Your monthly principal and interest payments may change every year after the initial fixed period is over.

Cash-Out Refinance

What is it?

In simple terms, a cash-out refinance replaces your current mortgage loan with another loan that:

  • Pays off your current mortgage balance.
  • Uses the equity in your home to provide additional funds for other purposes.
  • When To Consider?

    How do you know if cash-out refinancing is the right move? There’s no hard-and-fast answer to that question, but you may want to consider refinancing if any of the following situations apply:

    • Interest rates have dropped substantially since the last time you financed your home.
    • You intend to stay in your home for several more years.
    • You can shorten your loan term.

    Important Questions To Think About

    With cash out refinancing, you need to weigh the benefits of how you’re going to use the money against the amount of time it will take to pay off the loan. Here are some things to think about:

    • Are interest rates lower than your current financing?
    • How much cash do you need?
    • What’s the monthly payment amount?
    • What’s the effect on your taxes?
    • What’s the total cost of borrowing?
    • What’s your break-even point?
    Skip to content