Mortgages 101

If you have thought about purchasing a home, you likely have done some thinking about the way owning a home will affect your loved ones. It will create a permanent roof over your head, protect your from rent increases, and serve as the foundation for many of your treasured memories. Buying a home does not just have sentimental value, though. It is also one of the most reliable ways to build wealth.

You may be thinking that buying a home would be a financial impossibility for you, but a mortgage can bring your dreams to life. In its most straightforward terms, a mortgage is simply a loan designed to help you buy a home. It allows you to pay off the loan as you build equity in your home.

When you take out your mortgage, you have two options: a fixed-rate mortgage or an adjustable-rate mortgage. With a fixed-rate mortgage, your interest rate is set for the life of the loan (usually a 15-year or 30-year term) so you are able to financially plan for your exact payments.

An adjustable-rate mortgage (also known as a variable-rate mortgage) does not have fixed interest rates. As the market changes, your interest rates will change which means over the life of the loan they are likely to increase. Adjustable-rate mortgages usually start out with more affordable interest rates than fixed-rate options, so they can be a great way to get younger and first-time homebuyers into the real estate market.

You deserve to have a mortgage professional come alongside you with the industry experience necessary to ensure you get the right mortgage. To work with a dedicated team, contact the Ranch & Coast Mortgage Group Inc. in Solana Beach. Our expert team is here to meet all of your California mortgage needs.