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San Diego Mortgage programs explained

These are the types of loan programs San Diegan's  and homeowners in general frequently use for their mortgage. (By the way if you haven't heard we offer the lowest San Diego mortgage rates of in all  the county). There are basically two types of mortgages fixed and adjustable, they all breakdown from there.

 The most basic type of loan is FIXED RATE mortgage. This essentially means that the rate of the loan will never move. This is perfect if you plan on being your home for most of your life. You never have to worry about rate changing. Do this right the first time and you may never have to refinance or get another home loan. Is this right for our investor clients? Probably not. For many San Diego homeowners this is their best bet.

 These loans come in many different terms (years needed to payoff). They come in 10,15,20,25,30,40,45, and 50 year terms. If it works for your income, it's wise to payoff your home in the least amount of time possible. Under most circumstances. As you increase the term the payment may be lower, but cost you more in interest in the long run.

 The adjustable rate mortgages are pretty much everything else, in the simplest terms. There really is a myriad of different programs for everybody but they are either adjustable of fixed.

 One of the most common San Diego mortgage loan program's is the "hybrid  ARM". Some sources say they represent almost 50% of all San Diego home loans. I think they are great if they are right for your situation. Not so great if you want to be in your home a long time, unless you like to ride the market.

 The Hybrid ARM is so names because they come in fixed terms for 2,3,5,7 and 10 years in most cases. After this intial fixed period the rate will start to adjust every year, so the 5 reprsents the fixed period and the second number will represent the rate that it adjust. 5/1= fixed for five years and then adjust every year there after. 5/6=5  fixed for five years and then adjust every six months. It's a little know secret that getting a 3/6 rather than a 3/1 you will many times get a slightly lower interest rate

 An Adjustable rate San Diego home loan many times is the choice for

To be continued for more San Diego Mortgage information