Prodigy Home Loan Interest Rates in Sunland Park, NM



You may be in need of a home loan in Houston and are wondering what types of interest rates are available for you to choose from. These interest rates may vary depending on the type of home loan (FHA loans, VA loans, USDA loans, Conventional home loans & Mortgage refinance) you need our team of professionals to give you.

There are two main types of home loan interest rates (Fixed and Adjustable) and their sub-types. 

Fixed-rate home loans 

They are referred to as fixed-rate mortgage because the interest rates on them are constant throughout the period of the loan. They work with a principle that each month’s payment is equal to the interest rate times the principal, in addition to a small percentage of the principal itself. The interest paying on the remaining principal becomes lower by the fact that a bit of the principal is paid off each month. Consequently, more of the monthly payment is made to the principal, each month. Examples include; 5-year, 15-year, and 30-year fixed-rate home loans, the most common types in being the 15-year and 30-year fixed home loans.

Benefits of Fixed-rate mortgages

  • The monthly payment is constant
  • Easier budgeting because you know the payment you expect to make
  • A little principal is paid off every month
  • Grown home equity as opposed to an interest-only loan
  • Extra payments allowed 
  • Most fixed-rate loans are free from pre-payment penalties
  • Saves you of the event of spiking interest rates since your rate is already determined and does not change


  • Interest rates are raised as compared to adjustable-rate loans or interest-only loans
  • In the event that interest rates fall or are constant, it becomes expensive as it’s fixed
  • The Principal is paid off at a slower rate than the adjustable-rate loan
  • Not favorable if you plan to sell your home within 5-10 years.
  • It’s not easy to meet the requirements for the loans
  • Raised closing costs for a conventional loan

Adjustable-rate mortgages (ARM)

They are also known as variable-rate mortgages. This is because they have periodically changing interest rates. They work by having an initial period of time usually five or seven years that the interest rate is fixed as in fixed-rate mortgage and then the loan adjusts and the interest rates fluctuate when the initial period is over. Examples include Hybrid ARM, Interest-only ARM and Payment option ARM where Hybrid ARM is the most common home loan in.

Benefits of ARM Loans

  • Low-interest rates 
  • Typically, no prepayment penalty
  • Mortgage payments could get lower if interest rates decrease
  • You can sell the property or refinance before ARM fixed-rate period ends


  • Mortgage payments may increase if interest rates increase
  • Investment property rental income does not increase hence you are cash flow negative 

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