Frequently Asked Questions
At Pinnacle Bancorp, Inc education is key. We
believe an informed customer is a better customer.
That's why we strive to not only close your
mortgage loan efficiently but we also try to inform
you about the product you've selected. Below you
will find answers to some of our most frequently
asked questions.
Q. What is the Difference Between a Fixed Rate Mortgage and
an Adjustable Rate Mortgage (ARM)?
A. A Fixed Rate Mortgage has an interest rate that does not
change for the life of the loan. An Adjustable Rate Mortgage
has an interest rate that is fixed for a period of time, once that
time frame has expired the interest rate is subject to adjustment
that follows the following formula:
Index + Margin = Rate
You can find both the governing index and the margin
percentage listed on both the Truth In Lending form and the
final Mortgage Note.
