East West Mortgage offers both adjustable and fixed rate mortgage loans. Here is a summary of the two to help you gain a better understanding on which one may be best suited for you:
The first type of mortgage loan is an adjustable rate mortgage. It is suited for those who know they will be moving out of their home after a few years. The initial few years' rates are fixed, for 3, 5, 7 years and so forth. After that time has passed, the mortgage rates begin to change. This happens when the mortgage rates offered vary accordingly. As the mortgage rates rise, so does your monthly payment. As the mortgage rates lower, however, there is no need to refinance the mortgage loan as it will automatically be calculated within the monthly payment.
More Adjustable Rate Mortgage FAQs
This type of loan is more for those who are ready to face the consequences if any should arise. The initial cost and interest rates are lower than a fixed rate mortgage. The price of having these two positive aspects are unpredictability with mortgage monthly payments and unsafe for those who need a solid ground to be on.
Fixed Rate Mortgage Information
The second type of mortgage loan is the fixed rate mortgage. This type of loan typically has a higher interest rate than an adjustable rate mortgage. This is because this loan provides stability and security for the home owner. As mortgage rates may rise, your set mortgage rate will still be low regardless. This results in having a lower monthly payment while others in the market will be paying more.
Pay a Bit More for Reassurance and Safety
By paying a little bit more, this may help you save money down the road when opposed to an adjustable rate mortgage. Mortgage payments are straight and to the point each and every month. This amount never changes since the mortgage rate is locked until the loan is paid off. This type of mortgage loan reassures that although mortgage rates change, yours will not.
Act now by calling 1-800-880-4202 to get started today! You may also use our online mortgage application as well!
