> Conventional Loans

Conventional loans include fixed rate, adjustable rate and balloon loans of $417,000 or less. Conventional simply means loans that are not insured by a governmental agency.

Fixed rate loans typically have terms between 10 and 30 years. Which you choose depends on how quickly you want to pay off your loan. With a fixed rate loan your interest rate will stay the same for the life of the loan so you don't have to worry about increases in either your loan rate or loan balance.

Adjustable rate loans have rates that change periodically. These loans typically offer a lower initial interest rate, but this rate will be adjusted as market rates rise and fall. Pacific Crest Savings Bank offers adjustable rate loans with rates that change as often as once a month, as well as loans that are fixed for an initial period (one, three, five, seven or ten years) and then change on a yearly basis. Some adjustable rate loans offer an interest-only format providing further decrease to payments without any principal reduction. Most adjustable rate loans have both periodic and lifetime caps that limit how much the interest rate can increase.

Adjustable loans can be a great option for people who are planning to be in their home for a short period of time or who are expecting job and career changes with increasing compensation.

Balloon loans offer a fixed rate for a five or seven year period after which the loan comes due and must be paid off in full or refinanced. These loans typically offer lower rates for the five or seven year period than fixed rate loans and may be used when the borrower is either expecting to be in the home for a shorter period of time or anticipating a future change in interest rates.

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