CONVENTIONAL MORTGAGES
Fixed-Rate
Fixed-Rate
Fixed-Rate
Predictable payments for the life of your loan.
Predictable payments for the life of your loan.
A fixed-rate mortgage does exactly what the name suggests: your interest rate stays the same from the day you close until the day you make your final payment. That stability is the entire appeal.
The most common terms are 15-year, 20-year, and 30-year. The 30-year is the most popular for a simple reason: longer terms mean lower monthly payments, which makes homeownership accessible to more buyers. Shorter terms cost more each month but save substantial money in total interest, and you own your home outright sooner.
The trade-off is straightforward. Fixed-rate loans typically start at a higher interest rate than adjustable-rate alternatives. You're paying for certainty: the lender takes on the risk of rates rising over decades, and that protection comes at a small premium.
A fixed-rate mortgage makes the most sense if:
You plan to stay in the home long-term (typically 7+ years)
You value predictability and want to know exactly what housing will cost year over year
You're budgeting tightly and need monthly stability
You believe interest rates may rise and want to lock in today's rate
A Thompson Kane loan officer can walk through whether a 15, 20, or 30-year term fits your situation, and show you what each looks like for your specific numbers.
A fixed-rate mortgage does exactly what the name suggests: your interest rate stays the same from the day you close until the day you make your final payment. That stability is the entire appeal.
The most common terms are 15-year, 20-year, and 30-year. The 30-year is the most popular for a simple reason: longer terms mean lower monthly payments, which makes homeownership accessible to more buyers. Shorter terms cost more each month but save substantial money in total interest, and you own your home outright sooner.
The trade-off is straightforward. Fixed-rate loans typically start at a higher interest rate than adjustable-rate alternatives. You're paying for certainty: the lender takes on the risk of rates rising over decades, and that protection comes at a small premium.
A fixed-rate mortgage makes the most sense if:
You plan to stay in the home long-term (typically 7+ years)
You value predictability and want to know exactly what housing will cost year over year
You're budgeting tightly and need monthly stability
You believe interest rates may rise and want to lock in today's rate
A Thompson Kane loan officer can walk through whether a 15, 20, or 30-year term fits your situation, and show you what each looks like for your specific numbers.
A fixed-rate mortgage does exactly what the name suggests: your interest rate stays the same from the day you close until the day you make your final payment. That stability is the entire appeal.
The most common terms are 15-year, 20-year, and 30-year. The 30-year is the most popular for a simple reason: longer terms mean lower monthly payments, which makes homeownership accessible to more buyers. Shorter terms cost more each month but save substantial money in total interest, and you own your home outright sooner.
The trade-off is straightforward. Fixed-rate loans typically start at a higher interest rate than adjustable-rate alternatives. You're paying for certainty: the lender takes on the risk of rates rising over decades, and that protection comes at a small premium.
A fixed-rate mortgage makes the most sense if:
You plan to stay in the home long-term (typically 7+ years)
You value predictability and want to know exactly what housing will cost year over year
You're budgeting tightly and need monthly stability
You believe interest rates may rise and want to lock in today's rate
A Thompson Kane loan officer can walk through whether a 15, 20, or 30-year term fits your situation, and show you what each looks like for your specific numbers.
Adjustable-Rate
Adjustable-Rate
Adjustable-Rate
A lower starting rate with built-in flexibility.
A lower starting rate with built-in flexibility.
An adjustable-rate mortgage (ARM) starts with a fixed interest rate for a set introductory period, typically 5, 7, or 10 years, then adjusts periodically based on broader market rates. You'll often see ARMs written as "5/6 ARM" or "7/6 ARM," where the first number is the years of fixed-rate period and the second is how often the rate adjusts after that (every 6 months in those examples).
The appeal: ARMs almost always start at a lower interest rate than fixed-rate loans of the same term. For buyers who don't plan to keep the loan past the fixed period, that initial savings can be meaningful.
The trade-off: After the fixed period ends, your rate and your monthly payment can go up. Or down. Modern ARMs include rate caps that limit how much the rate can shift at each adjustment and over the life of the loan, which protects against the kind of extreme increases that made ARMs problematic in the years leading up to 2008. Today's ARMs are a different product, with consumer protections built in.
An ARM may make sense if:
You expect to sell or refinance before the fixed period ends
Your career or financial situation is likely to change in the next several years
The lower starting payment helps you qualify for, or comfortably afford, the home you want
You're comfortable with some uncertainty in exchange for upfront savings
ARMs require a clearer-eyed view of your timeline and your tolerance for change than fixed-rate loans do. They're a good tool for the right situation, and a poor fit for anyone who'd lose sleep over a possible payment shift several years from now.
A Thompson Kane loan officer can model what an ARM would look like alongside a fixed-rate option, so you can see the real trade-off before deciding.
An adjustable-rate mortgage (ARM) starts with a fixed interest rate for a set introductory period, typically 5, 7, or 10 years, then adjusts periodically based on broader market rates. You'll often see ARMs written as "5/6 ARM" or "7/6 ARM," where the first number is the years of fixed-rate period and the second is how often the rate adjusts after that (every 6 months in those examples).
The appeal: ARMs almost always start at a lower interest rate than fixed-rate loans of the same term. For buyers who don't plan to keep the loan past the fixed period, that initial savings can be meaningful.
The trade-off: After the fixed period ends, your rate and your monthly payment can go up. Or down. Modern ARMs include rate caps that limit how much the rate can shift at each adjustment and over the life of the loan, which protects against the kind of extreme increases that made ARMs problematic in the years leading up to 2008. Today's ARMs are a different product, with consumer protections built in.
An ARM may make sense if:
You expect to sell or refinance before the fixed period ends
Your career or financial situation is likely to change in the next several years
The lower starting payment helps you qualify for, or comfortably afford, the home you want
You're comfortable with some uncertainty in exchange for upfront savings
ARMs require a clearer-eyed view of your timeline and your tolerance for change than fixed-rate loans do. They're a good tool for the right situation, and a poor fit for anyone who'd lose sleep over a possible payment shift several years from now.
A Thompson Kane loan officer can model what an ARM would look like alongside a fixed-rate option, so you can see the real trade-off before deciding.
An adjustable-rate mortgage (ARM) starts with a fixed interest rate for a set introductory period, typically 5, 7, or 10 years, then adjusts periodically based on broader market rates. You'll often see ARMs written as "5/6 ARM" or "7/6 ARM," where the first number is the years of fixed-rate period and the second is how often the rate adjusts after that (every 6 months in those examples).
The appeal: ARMs almost always start at a lower interest rate than fixed-rate loans of the same term. For buyers who don't plan to keep the loan past the fixed period, that initial savings can be meaningful.
The trade-off: After the fixed period ends, your rate and your monthly payment can go up. Or down. Modern ARMs include rate caps that limit how much the rate can shift at each adjustment and over the life of the loan, which protects against the kind of extreme increases that made ARMs problematic in the years leading up to 2008. Today's ARMs are a different product, with consumer protections built in.
An ARM may make sense if:
You expect to sell or refinance before the fixed period ends
Your career or financial situation is likely to change in the next several years
The lower starting payment helps you qualify for, or comfortably afford, the home you want
You're comfortable with some uncertainty in exchange for upfront savings
ARMs require a clearer-eyed view of your timeline and your tolerance for change than fixed-rate loans do. They're a good tool for the right situation, and a poor fit for anyone who'd lose sleep over a possible payment shift several years from now.
A Thompson Kane loan officer can model what an ARM would look like alongside a fixed-rate option, so you can see the real trade-off before deciding.
Loans
Ready to start your journey to home ownership?
©2026 Thompson Kane & Co., Inc. | NMLS# 898428
8040 Excelsior Dr, Suite 100, Madison, WI 53717
Ready to start your journey to home ownership?
©2026 Thompson Kane & Co., Inc. • NMLS# 898428
8040 EXCELSIOR DR, Suite 100, Madison, WI 53717
Ready to start your journey to home ownership?
©2026 Thompson Kane & Co., Inc
NMLS# 898428
8040 Excelsior Dr, Suite 100
Madison, WI 53717