What is the difference between and Adjustable Rate Mortgage (ARM) and a Fixed Rate Mortgage in South Carolina
When buying a home in South Carolina, choosing the right type of mortgage loan is just as important as choosing the best house. One of the first decisions that you will have to make is whether to choose a fixed-rate mortgage or an adjustable-rate mortgage (ARM).
Both will allow you to get the house of your preference, but each one comes with unique advantages and disadvantages. And with all the conflicting information floating around, you can bet that the decision will not be an easy one. But thanks to our highly specialized staff, we can make it a piece of cake for you. Just talk to us, and our South Carolina mortgage experts will advise you appropriately based on your income, debts, home value and many other factors.
Mortgage Rates as of May, 27 2025 | See Rate Assumptions | Rate Terms Explained
Rate Table Assumptions
Conventional Rates shown assume a purchase transaction.
Annual Percentage Rate (APR) calculations assume a purchase transaction of a single-family, detached, owner-occupied primary residence; a loan-to-value ratio of less than or equal to 96.5%; a minimum FICO score of 740, lock days at 15.
Term
Loan Amount
LTV
Points
30yr Fixed Conv.
$375,000
75.0%
1
15yr Fixed Conv.
$375,000
75.0%
1
30yr Fixed FHA
$289,500
96.5%
1
15yr Fixed FHA
$289,500
96.5%
1
30yr Fixed VA
$300,000
100.0%
1
15yr Fixed VA
$300,000
100.0%
1
30yr Fixed Jumbo
$900,000
75.0%
1
15yr Fixed Jumbo
$900,000
75.0%
1
30yr Fixed USDA
$275,000
100.0%
1
Rates may be higher for loan amounts under $375,000. Please call for details.
Rates are subject to change without notice.
Closing Costs assume that borrower will escrow monthly property tax and insurance payments.
Subject to underwriter approval; not all applicants will be approved.
Fees and charges apply.
Payments do not include taxes and insurance.
Rates based on information gathered from OptimalBlue.
Mortgage insurance is not included in the payment quoted. Mortgage insurance will be required for all FHA and USDA loans as well as conventional loans where the loan to value is greater than 80%.
Restrictions may apply. Ask for details.
Moreira Team | MortgageRight is an Equal Opportunity Lender
“Rate Over X%” Assumptions
Rates shown assume a refinance transaction.
Annual Percentage Rate (APR) calculations assume a purchase transaction of a single-family, detached, owner-occupied primary residence; a loan-to-value of 75%; a minimum FICO score of 740; a Loan Term of 360 months; and a loan amount of $375,000 for conforming loans.
Rates may be higher for loan amounts under $275,000. Please call for details.
Rates are subject to change without notice.
Closing Costs assume that borrower will escrow monthly property tax and insurance payments.
Subject to underwriter approval; not all applicants will be approved.
Fees and charges apply.
Payments do not include taxes and insurance.
Rates based on information gathered from OptimalBlue.
Mortgage insurance is not included in the payment quoted. Mortgage insurance will be required for all FHA and USDA loans as well as conventional loans where the loan to value is greater than 80%.
Restrictions may apply.
Moreira Team | MortgageRight is an Equal Opportunity Lender
Rate Terms Explained
What are Mortgage Points?
Mortgage points, often called discount points, are optional fees that a homebuyer pays at closing in exchange for a reduced interest rate on their mortgage. This process is commonly referred to as "buying down the rate" or a "rate buydown.
What are Lender Credits?
Lender credits are a feature in mortgage financing where the lender agrees to cover some your closing costs in exchange for you accepting a higher interest rate on your loan. This arrangement can make it easier for buyers to afford the upfront costs of purchasing a home.
What is APR?
APR, or annual percentage rate, is a measure of the total yearly cost of borrowing money through a mortgage. Unlike the regular interest rate, which is just the cost of borrowing the principal, the APR incorporates both the interest rate and many of the fees and costs associated with getting your loan.
Rate Feature
Lender Credit
vs
Discount Points
Upfront Costs
Lower (less paid at closing)
Higher (more paid at closing)
Interest Rate
Higher Rate
Lower
Long Term Cost
Higher (more interest paid)
Lower (less interest paid)
Best for...
Short Term Ownership or Cash Strapped
Long Term Ownership or Cash Rich
What is a Fixed Rate Mortgage in South Carolina?
Our crew will tell you that with a fixed rate, you will be charged the same interest rate over the whole duration period of the loan. Meaning your monthly mortgage payments will be the same each month. Most fixed rate mortgage loan holders like it because it is very predictable and not subject to economic ups and downs. The only problem is that if interest rates drop you will not be among those whose monthly payments will decrease.
What is an Adjustable Rate Mortgage in South Carolina?
An adjustable rate mortgage, or ARM, has flexible interest rates. Lenders usually charge very low rates in the initial stages of the loan and then increase gradually with time. Even so, the rate charged on your loan will drop when market rates drop. But it will also increase when the market rates increase. So you might end up paying varying amounts for each month, depending on the terms of your loan and the general real estate climate.
While South Carolina’s real estate market is not as volatile as other states, it is certain that at one point your interest rate will change if you take out an adjustable rate mortgage loan. But a fixed rate mortgage loan will hinder you from taking advantage of low-interest rates. The best way to go about it? Talk to us, and we will give you information for both fixed rate and adjustable fixed rate mortgage in South Carolina.
