What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?
Gresham home buyers will be faced with many decisions over the course of their home buying process. One of the things Gresham locals looking to buy a home need to be prepared for is choosing the type of mortgage they want.
Buying a home for the first time is a big responsibility. Stonebridge Mortgage Group helps first time home buyers in the Gresham area find the answers to their home buying questions so they can make the best decisions toward achieving their home buying goals. By arming yourself with common sense and the right knowledge, you can make the search for your home all the easier.
Fixed-Rate Mortgage vs. Adjustable Rate Mortgage
Gresham home buyers can get an idea of what each mortgage offers based on its name alone. A fixed-rate mortgage is, like it sounds, a mortgage that stays at the same interest rate for as long as you are paying down the loan, regardless of whether interest rates, in general, go up or down. On the other hand, an adjustable-rate mortgage can go up or down based upon the overall interest of the rate market. Some home buyers find adjustable mortgage rates tempting because it is sometimes possible to get an adjustable-rate mortgage at a much lower interest rate than a fixed-rate mortgage. However, the rate of an adjustable mortgage could rise quickly in a matter of a few years.
Other adjustable rate mortgages include a very low introductory mortgage rate for five or seven years, followed by a much higher rate. These loans are designed to be useful to Gresham home buyers who expect to live in their home a very short period of time, to refinance at a later date, or to flip the home for investment purposes. Gresham locals looking to buy a home should remember that while adjustable-rate mortgages can be a valuable home buying tool in certain situations, they can also be dangerous. Consider the possibility of your mortgage rate rising dramatically, and think seriously about the flexibility of your finances and whether it could support those types of fluctuations.
Stonebridge Mortgage Group Offers Guidance On All Mortgage Matters
For professional assistance with mortgages and related services, look no further than Stonebridge Mortgage Group. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. We help get you pre-approved for a mortgage and help with your real estate loans and other mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and is located in Gresham, Oregon. Don’t wait to get quality assistance with buying your home!
Call us today at 503.661.5580