Mortgage rate means the interest rate on which a mortgage loan has been taken. There are mainly two types of mortgage rates that are Fixed Mortgage Rate and Adjustable-Rate Mortgage.
One of the largest mortgage markets in the United States of America is California. So it is expected that the Adjustable-Rate Mortgage and Fixed Mortgage Rate in California are higher. To find the best and suitable mortgage loan, JB Mortgage Capital Inc. can be the corporation you desire.
What is Fixed and Adjustable-Rate Mortgage?
Fixed mortgage rate means the rate of interest decided by the mortgage lender will not change for a specific period of time. The period of time could vary from 5 years to 30 years or so. Fixed mortgage rates are preferred more than variable ones.
Adjustable-rate mortgage is the mortgage rate in which the rate of interest would vary from time to time on the basis of the market conditions. The payment will be different too.
Fixed or Adjustable
The reason why a fixed mortgage rates is California most favored rate over Adjustable-rate mortgage are:
- Risk Factor: The risk factor plays one of the most important roles in deciding the mortgage type. In fixed mortgage rate the risk factor is less because the interest rate won’t fluctuate according to the market circumstances. It will remain stable. While adjustable rate mortgage will vary according to the situation. It could increase or even decrease. E.g. If the ARM is 5% initially then there is no guarantee that it could even increase to 9% whereas if the Fixed mortgage rate is 6% initially then it won’t change according to the nature of the market.
- Budgeting Factor: In terms of budgeting, the fixed mortgage rate is better as doing calculations becomes easier and there are is certainty about the amount to be paid. While in adjustable-rate mortgage there is no certainty that how much amount will be paid in future.
- Understandable: If you don’t know much about ARM and its method then fixed mortgage rate is for you. They are easy to understand.
The JB Mortgage Capital Inc. has fixed rate of mortgage in California by December 17, 2018, as follows:
- 30 years – Below 4.50%
- 20 years – Below 4.25%
- 15 years – Below 3.75%
- 10 years – 2.88% level
Low fixed mortgage rate in California is provided at JB Mortgage Capital Inc. The services provided at this firm are up to the expectations of a customer.