What Mortgage Loan Is Right For Me?
One of the first choices presented to a homebuyer is whether to choose a fixed-rate or adjustable-rate mortgage loan. Most loans will fit into these two categories, however there is a third “hybrid” option of the two. The length of time a buyer plans to live in the home can also effect which loan choice is best.
What Is A Fixed vs Adjustable Loan Program?
An adjustable-rate mortgage (ARM) has a low initial cost because the interest rate of the mortgage adjusts based on the current market conditions. A fixed-rate mortgage can be more expensive but it is more secure since the interest rate will remain “fixed” form the moment you take out the loan. Hybrid ARMs are a great feature for first time home buyers who may not be settling down for a set amount of time. This loan option allows you to have a fixed-rate for a certain amount of time (3, 5, 7, or 10yrs) and then becomes an adjustable-rate for the remainder of the loan.
Working With A Qualified Lender
At Long Beach Home Loan we are committed to serving our clients with the best advice for their home buying needs. If you are thinking about purchasing your first home, or refinancing your existing loan, we can help! Contact me, Jack Skovgard (562-340-9453), for any questions you may have about different loan options to see what might be right for you.