Current California Mortgage Rates
Quick Mortgage Definitions / Terms / Facts
Adjustable rate mortgagesAdjustable rate mortgages ARMs are one of the basic types of home loans. ARMs are offered at lower and more appealing rates at the beginning of the term. An adjustable rate mortgage begins with a guaranteed rate that can be locked in anywhere from a month to ten years at a time. The 5/1 ARMs or 7/1 ARMs are common adjustable rate mortgages assumed by borrowers. Another adjustable rate mortgage is the 4 payment option loan. These adjustable rate mortgage types are all typically interest only payments to help the borrower maximize cash flow.
What is the difference between "locking in" an interest rate and "floating"?
If you are concerned that interest rates may rise during the time your loan is being processed, you can "lock in" the current days interest rate. You can lock your loan for up to 360 days. When you "lock in" an interest rate, you are guaranteed that rate for the agreed upon length of time. The benefit is the security of knowing your interest rate is fixed if interest rates should rise.
First Steps to Getting a Mortgage?
Get a Free Credit Report!The first step to getting a mortgage is to know your credit score. Understanding your credit report is a critical part to getting your mortgage. Raise your score while you shop for your home to get the lowest rate at closing, with a few easy steps you can easily raise your score in within a few months.
