Fixed-Rate Mortgage are one of the most popular types available. They are very stable, because the interest rate paid on them is fixed. This means that your monthly payments will always be the same. The best time to use a fixed-rate mortgage is when interest rates are low and you think that they will be going up. A good indicator to use when considering a fixed rate mortgage is if you plan to keep this property for at least 5 years.
Common fixed rates
- 30 Year Fixed
- 20 Year Fixed
- 15 Year Fixed
An Adjustable-Rate Mortgage has an interest rate that falls or rises as general market interest rates fall or rise. Normally, an adjustable rate mortgage starts with a relatively low interest rate, which is fixed for 3 months to several years, and then the interest rate adjusts to market rates. Keep in mind that, in most cases, sooner or later the interest rate on an adjustable rate mortgage will rise. This type of mortgage is also referred to as an ARM or variable mortgage. To come up with your exact rate of interest, you add your index (which adjusts with the market) to your margin (a fixed percentage).
Common Adjustable Rate Mortgages
- Pay Option ARM’s (4 payment options monthly, including negative amortized)
- 3/1 ARM (Fixed for 3 years, then adjusts every year)
- 3/6 ARM (Fixed for 3 years, then adjusts every 6 months)
- 5/1 ARM (Fixed for 5 years, then adjusts every year)
- 5/6 ARM (Fixed for 5 years, then adjusts every 6 months)
- 7/1 ARM ( Fixed for 7 years, then adjusts every year)
- 10/1 ARM (Fixed for 10 years, then adjusts every year)
Fixed-Rate Mortgage in Thousand Oaks, Westlake Village, Newbury Park, Simi Valley and anywhere in California