How To: Choose The Best Mortgage Type

Mortgage loan agreement application with house shaped keyring

How To: Choose The Best Mortgage Type

The different types of Solana Beach, CA mortgage loans, and which might be best for you.

People tend to shy away from the mortgage world because they think it’s confusing. It can be – but that’s only if you don’t have a good guide.

We want to help you be as informed as possible about your financing options when buying a home. To help you get the right loan for your specific needs, here’s a brief guide of the different mortgage types and who they best serve.

  • Fixed Rate Mortgage: With this type of financing, the interest rate you’ll pay on your loan is fixed from day one. That means you know your dues to your mortgage lender will always be the same. This type of loan is best for people who want to lock in manageable costs for the long-term. If you plan to be in your home for at least a decade, choose a fixed rate mortgage.
  • Adjustable Rate Mortgage: On the other side, adjustable rate mortgages don’t set a certain interest rate, and your lender will adjust it as the market changes. Your rate could go down, but that would mean the market would be doing poorly. Generally, expect adjustable rate mortgages to get more expensive as the years go on, though they start out more affordable than fixed rate ones. If you know you’ll start earning a higher income as the years pass or plan to sell after a handful of years, this a good option for you.

This guide is meant to help you start thinking about the right type of mortgage for you, but make sure you visit Ranch & Coast Mortgage Group Inc. to get the rest of the way. As the Solana Beach, California mortgage experts, we have the insider insight you need to make sure you choose the best financing for your family.