Types of Loans

Thinking of Refinancing? Learn why a 30-year Mortgage may not be right for you:

Here are some basic details about the most popular home loan options available at First Federal Bank of Kansas City.  For personal assistance, please contact us today and we'll help you choose the best options for your next home purchase.

Thirty-Year Fixed Rate Mortgage

The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

FHA Loans

An FHA loan is a 30-year fixed-rate mortgage that is insured by the Federal Housing Administration (FHA.)  Because these loans are backed by the government, you aren't required to make a large down payment when you purchase your home.  FHA loans are an excellent option to consider if you're a First-Time Home Buyer.  Plus, FHA loan rates are very competitive and First Federal Bank of Kansas City has been making FHA loans since 1934!

VA Loans

VA Loans are mortgages guaranteed by the U.S. Department of Veterans Affairs (VA.) VA loans allow Veterans or their surviving spouses to take advantage of mortgage options with low or no-down payment requirements. Typically Veterans can qualify for 100% financing on home purchases with a VA mortgage. First Federal Bank has been a VA-approved lender since 1946, so contact us today to learn more about VA loan eligibility!

Fifteen-Year Fixed Rate Mortgage

This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates usually isn't very large.

Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)

These increasingly popular ARMs—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

Portfolio & Investor Loan Options

Unlike most home lenders, First Federal Bank of Kansas City has several loan programs available to help you make the best mortgage decision for your family.

We have a selection of loans available that may be right for you if you prefer the peace of mind that comes from working with a local home lender.* This type of loan, known as a Portfolio Loan, is retained by First Federal Bank, in most cases.  These loans include our Exclusive Loan Options that few local lenders can match.

In addition to Portfolio Loan options, you can choose from our Investor Loan options.  An Investor Loan is a home loan that we make to you, and then sell to another financial institution.  Because of our 75+ year reputation for excellence, many investors allow us to offer you their very best mortgage rates, so contact us today to learn more about the options you have at First Federal Bank of Kansas City!

Ready to Get Started? Contact Us Today

Our team of Home Loan Officers is ready to help you choose the best home loan options. Contact us today for personal assistance with your next home loan!

*First Federal Bank reserves the right to assign, sell or transfer the servicing of any loan while the loan is outstanding. Visit First Federal Bank for complete details.

P.O. Box 419194
Kansas City, MO 64141-6194
Phone (816) 241-7800  |  Bank / ABA Routing Number: 301071592

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