Adjustable Rate Mortgages - otherwise known as ARM loans - are a popular choice for Southern Californians looking to buy a home. In contrast to fixed rate loans, which will come with the same interest rate for the duration of the mortgage loan, an adjustable rate mortgage comes with a low initial interest rate that is fixed for a period of time, and then may increase or decrease periodically based on the overall market.
Those who may be interested in Adjustable Rate Mortgage loans in Southern California may realize benefits from this type of home loan including:
Low initial interest rate for a set period of time, such as 5 years, 7 years, 10 years, or in some cases 15 years
An ARM loan may help Southern Californians to qualify for a larger loan as payments will be lower initially.
Significant savings during the initial fixed rate period
First time homebuyers in particular, often find Adjustable Rate Mortgage loans in Southern California to be the foot in the door of the competitive housing market, they need. With lower payments to begin, less income is used on mortgage payments, allowing homebuyers in Orange County, San Bernardino County, Riverside County, Los Angeles County, and San Diego County to advance in their careers, increasing income over time, all the while beginning to build equity in a home. In addition, homebuyers who plan to buy a home, but may move up, or relocate in a few years may find that an ARM loan is a great money saving mortgage loan.
It's important to note that there is some unpredictability inherent in an Adjustable Rate Mortgage. While rates may decrease after the set fixed rate period expires, it is also possible that rates can increase, resulting in larger monthly mortgage payments. It's important that you speak with a top-rated, experienced mortgage professional to discuss all mortgage loan options available to you in Southern California before deciding which mortgage loan product is right for you.
As top a Yelp! reviewed mortgage broker and direct mortgage lender in Southern California, Summit Lending provides low interest rate mortgage loans to buyers and homeowners all around Orange County Riverside County, San Diego County, San Bernardino County, Ventura County, and Los Angeles County. Our team at Huntington Beach based Summit Lending has all the expertise necessary to help you with your home financing needs, whether you're a first-time homebuyer or you've bought and sold multiple homes.
Heard on KFI Talk Radio each week, Summit Lending is proud to provide a full suite of loan products to homeowners, and homebuyers throughout Southern California. From conventional, 30-year fixed rate loans, to VA loans, FHA loans, cash-out refinances, reverse mortgages, and Government loans, Orange County's Summit Lending is here to help you to obtain the best mortgage for your needs, with fast approvals, and quick closings. Contact us online
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