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Fixed rate mortgages available in Southern California are a popular loan product for home buyers throughout Los Angeles, San Diego, Ventura, Riverside and Orange County. Fixed rate mortgages have a set (fixed) interest rate, which will not change over the duration of the mortgage loan. In other words, when considering your loan options in Southern California, if you select a fixed-rate loan, the interest rate you’ll pay at the start of the loan, will be the same interest rate for years to come.
Benefits of a Fixed-Rate Mortgage in Southern California
Homebuyers and homeowners reportedly cite the fact that their mortgage payment will always remain the same, with a fixed-rate mortgage as the primary reason for choosing this loan option. Unlike an Adjustable Rate Mortgage (ARM) loan, with a fixed-rate mortgage, borrowers can rely on their payment staying the same, irrespective of market changes, including interest rate increases.
Mortgage interest rates for Southern Californians have remained historically low for years. Compared to double digit interest rates commonly seen in the past, interest rates today remain firmly in the single digits. With a fixed rate mortgage, interest is typically paid off at a higher rate, earlier in the life of the loan. As time goes by, more and more of the monthly payment goes towards the principal amount of the loan.
Fixed rate mortgages in Southern California come with terms of 15 or 30 years. A 15-year fixed rate mortgage will generally have a lower interest rate, but payments will be higher as you’ll be paying off the loan in half the time.
Is a Fixed Rate Mortgage in Southern California Right for You?
There are many things to consider when deciding which type of home loan makes sense for you. Things to consider when deciding if a fixed-rate mortgage in Southern California makes sense to you include:
- How Comfortable Are You with Risk?
If you’re risk averse, a fixed rate mortgage loan will give you peace of mind, knowing your payment will remain the same for the duration of your loan.
- Do You Need a Lower Payment Initially?
If you need a lower mortgage payment to start with, but your career is on track, and you’ll be earning more money in the future, you may consider a loan with a lower initial interest rate, such as an ARM loan, rather than a fixed rate loan.
- Do You Plan to Move Again Soon?
If you plan to remain in your home for years, a fixed rate mortgage can be a great choice. However, if you’re planning to move again in a few years, it may be worthwhile to explore all other home loan options available in Southern California to see what makes the most sense.
When considering whether a fixed rate mortgage in Southern California is right for you, you’ll want to consider income stability, long term financial plans and goals, and ascertain how long you plan to be in the home. You will also want to weigh your level of comfort when it comes to taking risks. If you’re particularly risk averse, for example, you’ll likely be more comfortable in a longer term fixed rate loan.
Before deciding what type of home loan in Southern California is right for you, it is smart to consult with a trusted, top-reviewed, and top-rated Southern California mortgage broker. Through working together with a reputable mortgage broker, you will be able to determine the best mortgage loans for your needs, which also fit within your budget.
As an established, Orange County based mortgage broker and direct lender, Summit Lending is headquartered in Huntington Beach, serving all of Orange County, Los Angeles County, Riverside County, San Diego County and Ventura County.
With offices throughout Southern California, Summit Lending is able to make quick loan approval decisions, answer your questions immediately, and secure the best mortgage loans with the best rates available. Our dedication to exceptional customer service has earned us top reviews online, as a trusted full service mortgage broker and direct lender.
Based in Huntington Beach, CA, Summit Lending provides fixed rate loans, Adjustable Rate Mortgages, FHA loans, VA loans, and reverse mortgages. We can be reached online, on Facebook, or via phone at 888-451-9006.