A Simple Explanation of a Fixed Rate Mortgage and an Adjustable Rate Mortgage in Fremont, Pleasanton, San Jose, by Clyde Brown, Real Estate Expert in Fremont, Pleasanton, San Jose

When it comes time to take out a mortgage on your new home in Fremont, Pleasanton, San Jose you will have to choose between getting a fixed-rate mortgage or an adjustable rate mortgage. If you are unfamiliar with these terms here's a simple explanation of them both. Your Fremont, Pleasanton, San Jose real estate agent will be able to explain these terms further.

Fixed-rate mortgage

In general the interest rate on the fixed-rate mortgage is relatively higher than the rate you can get for an adjustable rate mortgage. Your lending institution in Fremont, Pleasanton, San Jose has to factor in any possible increases in interest rates over the term of the mortgage, and needs to compensate for any losses it may incur if the rates go up. This mortgage offers the most peace of mind for most people purchasing a home in Fremont, Pleasanton, San Jose because you can count on the monthly payments to remain the same for many years.

Adjustable-rate mortgage

An adjustable-rate mortgage comes with a lower interest rate, however you are taking a gamble with this type of mortgage. If the interest rate rises considerably at any one time during your loan period, then you may find yourself with monthly payments that you simply cannot afford. You should consider all of the risks involved before deciding on this type of mortgage for your new home in Fremont, Pleasanton, San Jose. It may not be worth the gamble, depending on your own budget and income.

The decision of whether to get a fixed-rate mortgage or an adjustable rate mortgage will be influenced d by the present interest rate when you apply for the loan. Your loan officer in Fremont, Pleasanton, San Jose can advise you as to whether it is a good time to get an adjustable rate mortgage or whether you should stick with a fixed-rate one.

There is a lot of free information available to you about buying, selling, investing, or relocating in the Fremont real estate market. For complete information about the Fremont Ca real estate market including current Fremont homes for sale, property values, market conditions and more please visit the most complete website dedicated to everything Fremont real estate related. www.ClydeBrownHomes.com.

If you or someone you know are in need of a competent and experienced Fremont real estate agent in or near Fremont Ca, or have real estate or mortgage related questions, please feel free to contact me I will be more than glad to answer your questions. Call me at 800-839-0665 or email me at Clyde@ClydeBrownHomes.com. Clyde Brown Legacy Real Estate & Associates.

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