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    As a buyer, what mortgage options do I have?

    With the economic recession slowly coming to an end and the Orange County real estate market quickly improving, more people than ever before are considering buying homes in the Orange County area and for the first time home owner or experienced home buyer, this can be a confusing and sometimes frustrating process because, there are a wide variety of mortgage options available and sometimes it’s hard to know where to turn.

    Fixed Rate Mortgages

    This type of home loan has been affectionately termed the “bread and butter” of the home loan industry because; it’s usually what most Orange County home buyers will choose. A fixed-rate mortgage typically comes with the term of 30 years but fixed-rate mortgages also come with terms as little as 15 years. With a fixed-rate mortgage, the homeowner will be able to pay off the principal over time so by the end of the loans term it will be completely paid off and the good news is that the interest rate and payment for the loan are fixed for the entire lifetime of the loan so they will never go up.

    FHA Mortgage

    The next option on the table for many homeowners is an FHA loan, with this loan the home buyer will be required to put down a down payment of at least 3.5%.

    Adjustable Rate Mortgage

    With a typical loan that has an adjustable rate, the loan will amortize over time but the payment and interest rate are not fixed, this means that the amount of money that the homeowner can pay could go up every single month or change frequently based on interest fluctuations on the 10 year Treasury Bond or changes with the mortgage index. Anyone who is considering choosing an adjustable-rate mortgage loan should use caution and make sure that they are fully aware of the financial consequences of their loan before they decide to get into it.

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