Loan Programs

A fixed-rate mortgage offers a straightforward monthly payment. With a fixed-rate mortgage, your interest rate—and your total monthly payment of principal and interest—will stay the same for the entire term of the loan. That predictability makes it easier to set your budget.

Fixed-rate mortgages are a good choice if you:

• Think interest rates could rise in the next few years and want to keep the current rate
• Plan to stay in your house for many years
• Prefer the stability of a fixed principal/interest payment to a payment that changes periodically (which is what happens with an adjustable-rate mortgage)

With a 30-year fixed-rate loan, you would have a lower monthly mortgage payment compared with a 15-year fixed-rate mortgage, but you’ll pay more interest over the term of the 30-year loan. Depending on what you can comfortably afford for a monthly mortgage payment, a 30-year fixed-rate loan might be a better fit for your budget.

In general, the longer the term of the mortgage is, the more interest you will pay over the life of the loan and the higher your interest rate will be, but your monthly payments will tend to be lower. The shorter the repayment term is, the faster you'll pay off and build equity in your home, though your monthly payments will generally be higher.

Fixed-rate mortgage loans are available in a variety of repayment terms, with 30, 20 and 15† years being the most popular.

If you want some personal help deciding what type of mortgage loan could be best for you, call one of our mortgage loan officers at 1.801.285.5000.

The 30-year fixed is one of the most popular mortgages. Many people like the fixed interest rate and lower monthly payments. But since the term of the loan is long, you'll pay more interest over the life of the loan than you would on a shorter-term mortgage, and you’ll build equity more slowly.

A 20-year fixed-rate mortgage helps you pay off your home faster and build equity quicker than a longer-term fixed-rate mortgage. A 20-year fixed generally has a lower interest rate than longer-term home loans but higher monthly payments.

You generally pay a lower interest rate with a 15-year loan than you would for longer-term fixed-rate loans. You will pay less interest than you would with a longer-term loan and build equity more quickly. However, your monthly payments will be higher for a 15-year than they would be on a longer-term mortgage.

If your mortgage will be for an amount higher than conventional thresholds, a jumbo mortgage may be an option. Jumbo loans are available for primary homes, secondary or vacation homes, investment properties and condominiums, and they are also available in a variety of terms. Jumbo home loans may have a higher interest rate and different requirements for your down payment than smaller home loans due to different underwriting requirements.

Adjustable-rate mortgages are a good choice if you:

• Are planning to move in a few years (before the end of the initial rate period) and therefore aren't concerned about possible rate increases
• Expect your income to rise enough in the coming years to cover any increase in payments resulting from an increase in the interest rate
• Want a lower initial monthly payments than a fixed-rate mortgage usually offers
• Think interest rates may fall in the future

Some disadvantages of adjustable-rate mortgages:

• Interest rates will increase in a rising rate environment
• Increase in rates will increase payment amount, which may not keep pace with increase in income
• Increase in interest rate will reduce accumulation of equity, especially where home values are declining, and may make it more difficult to refinance your loan

A 10/1 ARM has a fixed interest rate for the first 10 years. After 10 years, the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.

A 7/1 ARM has a fixed interest rate for the first 7 years. After 7 years, the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.

A 5/1 ARM has a fixed interest rate for the first 5 years. After 5 years, the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.

The Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA) offer government-insured, fixed-rate, mortgage loans. These loans have features that make them easier for first-time home buyers to obtain. These features include:

• low down payment requirements
• flexible credit and income guidelines

With higher maximum loan amounts, lower down payments required, and flexible credit and income guidelines - an FHA mortgage may be the perfect home purchase loan for you. Both fixed and adjustable rates are available.
FHA loans feature:

• Low down payment
• No maximum income/earning limitations
• Fixed- and adjustable-rate loans available
• Insurance from the federal government replaces private mortgage insurance (PMI)
• Maximum loan amounts vary by county

Learn More Apply Now

Flexible credit guidelines, great rates and the ability to borrower up to 100% of the value of a home makes the VA loan one of the best mortgages on the market. Bank of Utah is proud to help veterans take advantage of this great benefit.
VA loans feature:

• No down payment loans up to a certain amount for qualified veterans
• Fixed- and adjustable-rate loans available
• More flexible qualification guidelines than those for conventional loans

Learn More Apply Now

Utah Housing loans allow an eligible borrower, to borrower their down payment and closing costs. Borrowers are able to purchase a home with little or no cash investment at a competitive interest rate.

Learn More Apply Now

Rural Housing loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Learn More Apply Now