Which Mortgage Option is For You?
Whether you are ready to purchase or refinance, the Loan Advisors at American Pacific Mortgage will help you choose the mortgage option that meets your financial circumstances.
Discover the difference between Fixed or Adjustable, Jumbo or Conforming and other loan types below.
We provide the options – you get the loan!

Fixed Rate Mortgage
Find Financial Stability with a Fixed Rate Mortgage
A fixed rate mortgage is the most popular loan program chosen by homeowners. If you are one of the many homeowners who desire a stable monthly interest rate and payment over the life of your loan, then a fixed rate could be the loan for you.
Certainty
With a fixed rate loan, it doesn’t matter what is happening in the market. If interest rates begin fluctuating wildly, your rates will remain steady and sure. Nobody knows what the future holds, but with a fixed rate mortgage you can have the peace of mind that nothing will cause your rates and payments to rise.
Consistency
Your financial planning is made easier when you know what your mortgage payments will look like for the next 15 or 30 years. Set and reach short-term and long-term financial goals by knowing your interest rates will never go up, and neither will your payments. With a fixed rate mortgage, your principal and interest payment are set in stone. While your property taxes and homeowner’s insurance may change throughout the years, your principal and interest payments will be reliable and consistent.
Choice
Choose a fixed rate term that works for your financial goals. You have the freedom to select various fixed rate loan options. If you choose, you can make higher monthly payments and reduce the amount of time it will take to pay down your principal or pay off your mortgage before the end of your fixed term.
30 Year Fixed*
- The most popular mortgage loan program
- A stable interest rate and reliable monthly payments over the life of your loan
- Build equity over time and pay the principal balance down faster whenever you choose
A 30-year fixed* is a great option when you want peace of mind of stable monthly payments to reach your long-term financial goals.
15 Year Fixed*
- Interest rates are typically lower than 30-year fixed
- A fixed rate loan that allows you to pay principal down faster than 30-year fixed*
- Pay higher monthly payments in order to pay less in total interest over the life of the loan
A 15-year fixed* is a terrific option when you prefer a higher monthly payment in exchange for paying less in interest, want to pay your house off sooner, or when you have short-term plans for your home.

Adjustable Rate Mortgage
A dynamic loan option to power your goals.
An Adjustable Rate Mortgage, or ARM, can be a powerful tool for homeowners. An ARM is a mortgage that offers a low introductory fixed rate term. After this period is over, the adjustable period follows for the remainder of the term. During this adjustment period, the interest rates can adjust up or down, depending on the financial index it is attached to.
During the initial fixed period, the interest rates on an ARM are generally lower than with a fixed term loan. This means lower monthly payments for the introductory term. If you plan on selling or refinancing your home in 5-7 years, the ARM is a great option for lowering your rate and payments during that introductory fixed period.
- Lower interest rates and payments early in the life of the loan
- Mortgage payments and interest rates remain fixed for the introductory period
- Caps on interest limit the amount a rate can rise annually and over the life of the loan
Big Benefits For Short Term Goals
Lenders are able to offer lower interest rates on an ARM because they only have to guarantee that rate for the introductory fixed period. Luckily, the average American refinances or moves every 5-7 years, which just happens to be the same fixed period on an ARM.
For that period of time, you can benefit from lower interest rates and monthly payments compared to a fixed-rate mortgage.
What happens if you don’t refinance or move in the next 5- 7 years, and you reach the end of your ARM fixed term? When an ARM adjusts, the interest rates may be higher or lower than they are when you first get the loan. There is a risk of your interest rate and payments adjusting up. If your ARM does adjust up, a cap will limit the amount that the loan can go up annually and over its lifetime. You will be able to anticipate a worst-case scenario and know exactly how far up your interest rate can change that year and beyond.
The bottom line is that an ARM can be a powerful tool to get you a lower interest rate and monthly payments for a set period of time. This option is not right for everyone, but if you plan on moving or refinancing in the next 5 to 7 years, an ARM could be a benefit for you.
At American Pacific Mortgage, our loan advisors can help you to determine if an ARM fits your financial goals.


Reverse Mortgage
When A History Of Home Ownership Pays Off
If you are 62 or older and own your home, you are uniquely qualified to benefit from a reverse mortgage. This loan program is designed to help qualifying borrowers get access to their equity, stay in their home, and potentially rid themselves of a monthly mortgage payment.*
A reverse mortgage gives you access to the equity that you have built up in your home over the years through principal payments, your down payment, and appreciation. You can receive this equity to use however you want.
- Retirement funding
- Vacation or travel
- Investments
- Home repairs
- Medical Bills
With a traditional mortgage, you pay a monthly payment to a lender. With a reverse mortgage, the payment is made to you. How would you like to receive your equity?
- One lump sum
- Monthly payments
- Line of credit
You can choose these, or any combination when you receive your equity from a reverse mortgage.
With a reverse mortgage, you defer monthly payments on your mortgage. The amount owed then becomes a lien on the property. Any equity that you choose to have paid to you is added to that lien amount, with any interest accrued.
At the end of the reverse mortgage period, when you no longer occupy the home, the amount owed is either the mortgage balance or the value of the home, whichever is lesser.
A reverse mortgage can be a powerful tool to give you access to the equity that you have built up in your home over the years. It is not right for everyone, and if your financial goals include paying your mortgage off faster, than a reverse mortgage may not be for you. However, if you have built up equity over the years and you want to get cash from your home or defer monthly mortgage payments, then a reverse mortgage may be an excellent program to consider.
Our loan advisors at American Pacific Mortgage can sit down and listen to what goals you want to accomplish and help you to determine if a reverse mortgage is a good option for you. Our trusted advisors will help you understand your options, and give you all of the information to see if a reverse mortgage is a program for you.
*Borrowers will still be responsible for tax, insurance, and maintenance of the property. Must be a primary residence. All Borrowers must be 62 or older.
Solano Mortgage is a Division of American Pacific Mortgage Corporation NMLS #1850 is licensed by the Department of Business Oversight under the CRMLA/ Equal Housing Opportunity.