- 8:00AM-6:00PM Mon-Sun
Location
9323 Laguna Springs Dr Ste 110, Elk Grove, CA 95758
Call Us
Email Us
Menu
Menu
Menu
9323 Laguna Springs Dr Ste 110, Elk Grove, CA 95758
Then a fixed rate loan, may be right for you. A fixed-rate mortgage loan provides you with the security of having the same interest rate over the life of the loan
Fixed rate loans come in a variety of loan terms,including 15, 20, and 30 year terms. The monthly principal and interest payments will be predictable, which makes it easy to budget every month. May be a good choice if you plan to stay in your home for a long time.
Feel at ease from rising interest rates for the life of the loan, no matter how high interest rates go.
An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index. The ARM loan may include an initial fixed-rate period that is typically 3 to 10 years. The interest rate then may change (adjust) each year thereafter once the initial fixed period ends. For example, with a 5/1 ARM loan for a 30-year term, your interest rate would be fixed for the initial 5 years and could fluctuate up or down each subsequent year for the next 25 years.
ARM loans typically feature lower rates and monthly payments than comparable fixed-rate loans during the initial rate period, but rates could increase or decrease once the initial rate expires. While many home buyers prefer the security of a fixed-rate mortgage, an ARM can be a good choice, too – especially if you know you’ll be moving within the next few years.
3/1 ARMs and 5/1 ARMs generally provide the lowest interest rates and monthly payments during the initial rate period – ideal for those who don’t want a long-term mortgage.
10-year ARMs are an increasingly popular option because they combine significant savings for the initial rate period with longer protection from market-based interest-rate fluctuations.
Conventional ARMs typically feature lower interest rates and APRs during the initial rate period.
An adjustable-rate mortgage (ARM) lets you keep your monthly payments low during the initial term of your home loan, which gives you the option to pay down your mortgage faster.
Conventional ARMs are available for refinancing your existing mortgage, too.
Conforming loans (loans that conform to Fannie Mae and Freddie Mac guidelines) are a good choice for borrowers with very good credit, which generally means a FICO score of 740 or higher. There are also established guidelines for income and other personal financial information.
The loan amount for a conforming ARM is generally up to $424,100 for a single-family home, though limits may be higher in regions where home prices are higher. Jumbo ARMs allow you to exceed the conforming loan limit to borrow for a higher-priced home.
Most conventional ARMs will require at least 5 percent (and optimally 20 percent or more) as a down payment. For loans with lower down-payment requirements, explore government-backed mortgages like VA loans and FHA loans.
Adjustable rate mortgages are a popular option, but they’re not the only one. Contact a mortgage loan officer to find out which mortgage option may be the best fit for you.
Don’t let the complexities of securing a mortgage hold you back.
Anew Lending’s team of experts will guide you through the process with personalized consultation and a variety of loan programs to choose from.
With their commitment to honesty and integrity, you can trust that they’ll make home ownership in Sacramento accessible for you.
Take the first step towards your dream home today and schedule your consultation with Anew Lending!
9323 Laguna Springs Dr Ste 110, Elk Grove, CA 95758
Mon-Sun: 8:00AM-6:00PM
Mortgage Broker for Home Loans
306228
Web Design and Digital Marketing by Lead Nurture Close Marketing