{"id":795,"date":"2020-07-31T14:55:48","date_gmt":"2020-07-31T14:55:48","guid":{"rendered":"https:\/\/baycoast.bank\/?p=795"},"modified":"2023-06-13T21:56:05","modified_gmt":"2023-06-13T21:56:05","slug":"fixed-or-adjustable","status":"publish","type":"post","link":"https:\/\/baycoastmortgage.com\/en\/insights\/fixed-or-adjustable\/","title":{"rendered":"Fixed or Adjustable?"},"content":{"rendered":"<div class=\"lazyblock-resource-hero-24G2cJ wp-block-lazyblock-resource-hero\"><div class=\"noHero\" style=\"height: 10rem;\"><\/div>\n\n<div class=\"spacer\"><\/div>\n\n<div class=\"section\">\n\t<div class=\"smallWrapper gutenberg\">\n\t    \n\t    <div class=\"categories flex\" style=\"justify-content: flex-start;\">\n\t\t\t<div class=\"h6\" style=\"margin-right: 2rem;\"><a href=\"https:\/\/baycoastmortgage.com\/resource\/insights\">Insights<\/a><\/div>\n\t\t\t\t\t\t\n\t\t\t<div class=\"primaryColor dot h6\" style=\"transform: scale(2.2); \">\u00b7<\/div>\n\n\t\t\t<div class=\"h6\" style=\"margin-left: 2rem;\">\t\t\t\tJuly 31, 2020        \n\t\t\t<\/div>\n\t\t<\/div>\n\t    \n\t    <h1 class=\"h2 blue bgWhite\" style=\"max-width: 50rem\">Fixed or Adjustable?<\/h1>\n\t    \n\t    <hr style=\"margin-bottom: 7rem;\">\n\t  \n\t<\/div>\n\t\n\t<div class=\"wrapper\" style=\"justify-content: center; max-width: 90rem;\">\n\t\t<div style=\"width: 100%; position: relative;\">\n\t\t\t<img decoding=\"async\" data-src=\"https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min.jpg\" role=\"img\" aria-label=\"Fixed or Adjustable?\" style=\"--smush-placeholder-width: 2121px; --smush-placeholder-aspect-ratio: 2121\/1203;width: 100%; height: auto;\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" \/>\n  \t\t<\/div>\n\t<\/div>\n<\/div>\n\n          <\/div>\n\n<div class=\"lazyblock-interior-content-29lkIj wp-block-lazyblock-interior-content\"><div class=\"spacer\"><\/div>\n\n<div class=\"section\">\n\t<div class=\"paddedWrapper\">\n\t\t<div class=\"wrapper flex gutenberg\" style=\"justify-content: center;\">\n\n\t\t\t\n\t\t\t<div class=\"smallWrapper gutenberg\">\n\n\t\t\t\t<div class=\"h3\">Take the Guesswork out of the Mortgage Game<\/div>\n\n\t\t\t  \t<hr style=\"margin-bottom: 5rem;\">\n\n\t\t\t\t<!-- interior content -->\n\t\t\t\t\n\n<p>There\u2019s an old saying in real estate\u2014the house you look at today and don\u2019t pull the trigger on until tomorrow might be the same house someone else looked at yesterday and plans to buy today.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The first step in the homebuying process is to get preapproved for a mortgage. You\u2019ll learn exactly how much house you can afford, while letting sellers know you\u2019ll be presenting an offer that won\u2019t fall apart 30 days before closing.<\/li>\n\n\n\n<li>The next step is to decide what type of mortgage is right for you. For most potential homebuyers, fixed-rate mortgages or adjustable-rate mortgages will help you get into the home of your dreams\u2014on terms that fit your family\u2019s individual needs.<\/li>\n<\/ul>\n\n\n\n<p>As with other types of loans, you\u2019ll pay both principal and interest, no matter which mortgage you choose. Let\u2019s take a look at both types of loans, so you will have a better idea of your options when you contact a BayCoast Mortgage lending professional.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fixed-Rate Mortgages<\/h3>\n\n\n\n<p>Fixed-rate mortgages are the backbone of the mortgage lending business. They are most commonly available in 15- and 30-year terms (the length of time you\u2019ll be paying the mortgage). Homeowners who choose fixed-rate mortgages \u201clock in\u201d their interest rate at the beginning of the mortgage\u2014their rate and payment will never change over the life of the loan.&nbsp;<\/p>\n\n\n\n<p>Because an interest rate is locked in, fixed-rate mortgage payments aren\u2019t affected by marketplace influences. This makes fixed-rate mortgages attractive to budget-conscious homeowners. In fact, the only reason a fixed-rate mortgage payment will ever change is if escrow for property taxes, homeowners insurance or HOA dues\u2014additional costs that are commonly rolled into mortgage payments\u2014is ever adjusted.&nbsp;<\/p>\n\n\n\n<p>A 15-year mortgage allows homeowners to lock in lower rates, pay less interest, and pay off their homes more quickly. However, it\u2019s important to remember that the overall monthly payment on a 15-year fixed-rate mortgage will be higher, since you\u2019re paying off a larger part of the principal with every payment.<\/p>\n\n\n\n<p>If you\u2019re looking for a lower monthly payment, but still want the stability of a fixed-rate mortgage, a 30-year mortgage may be right for you. Your interest rate may be a bit higher (compared to a 15-year loan), but your monthly payment will be more wallet-friendly, since the amount of money you\u2019re repaying is spread out across 360 (30 years x 12 months) equal payments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Adjustable-Rate Mortgages<\/h3>\n\n\n\n<p>An adjustable-rate mortgage (ARM) actually has a 30-year term length, but offers homebuyers lower interest rates for the first five, seven, or 10 years. Usually, the shorter the term, the lower the interest rate tends to be. At the conclusion of the term you\u2019ve selected, the amount of interest you pay could adjust&nbsp;based on market conditions. This means your rate could increase, decrease, or stay the same\u2014it just depends on how the market is behaving at the time.<\/p>\n\n\n\n<p>If you\u2019ve already started looking at mortgage rates, you may have noticed a bunch of numbers that look like fractions. Don\u2019t worry, you\u2019re not back in math class; but you should take a minute to understand what they mean.&nbsp;<\/p>\n\n\n\n<p>Take 5\/1, for example. The \u201c5\u201d lets you know that you\u2019re looking at an adjustable-rate mortgage in which your interest rate is fixed for five years. Then, once the initial five-year lock ends, your rate (shown by the \u201c1\u201d) could adjust each year.<\/p>\n\n\n\n<p>Remember when we talked about your individual needs earlier? This is where you have an opportunity to make a wise financial decision. Let\u2019s say you know you\u2019re going to stay in your next home for just four years. If that\u2019s the case, why take out a 30-year, fixed-rate mortgage, when you could reap the benefits of 5-year ARM payments that could be much lower?<\/p>\n\n\n\n<p>If plans change and you decide to stay in your home for a few more years, you may be able to refinance if your rate is going to rise.<\/p>\n\n\n\n<p>The difference between a monthly fixed-rate payment and a short-term ARM payment can be significant. Why not put that extra cash to good use making home renovations, boosting your savings, or planning for the future?<\/p>\n\n\n\n<p>One final note on adjustable-rate mortgages: When doing your research, think of the initial rate as an \u201cintro rate.\u201d From an economic standpoint, it\u2019s important to look at the maximum amount that you could be paying if your rate adjusts to its cap\u2014the highest interest rate you\u2019d be required to pay.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">We\u2019re Here to Help<\/h3>\n\n\n\n<p>When it comes to the type of mortgage you choose, every family\u2019s goals and dreams are different from the next.&nbsp;<a href=\"https:\/\/baycoastmortgage.com\/about-us\/contact-us\/\">Contact us<\/a>, or call 877-466-2678, and let one of our experienced BayCoast Mortgage lending professionals walk beside you on your path to homeownership.<\/p>\n\n\n\t\t\t<\/div>\n\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Let\u2019s take a look at both types of loans, so you will have a better idea of your options when you contact a BayCoast Mortgage lending professional.<\/p>\n","protected":false},"author":10,"featured_media":1537,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2],"class_list":["post-795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min.jpg",2121,1203,false],"thumbnail":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min-150x150.jpg",150,150,true],"medium":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min-300x170.jpg",300,170,true],"medium_large":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min-768x436.jpg",768,436,true],"large":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min-1024x581.jpg",1024,581,true],"1536x1536":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min-1536x871.jpg",1536,871,true],"2048x2048":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min-2048x1162.jpg",2048,1162,true],"gform-image-choice-sm":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min.jpg",300,170,false],"gform-image-choice-md":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min.jpg",400,227,false],"gform-image-choice-lg":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2020\/07\/Couple-on-Couch-with-Laptop-min.jpg",600,340,false]},"post_excerpt_stackable_v2":"<p>Let\u2019s take a look at both types of loans, so you will have a better idea of your options when you contact a BayCoast Mortgage lending professional.<\/p>\n","category_list_v2":"<a href=\"https:\/\/baycoastmortgage.com\/en\/.\/insights\/\" rel=\"category tag\">Insights<\/a>","author_info_v2":{"name":"BayCoast Marketing","url":"https:\/\/baycoastmortgage.com\/en\/author\/marketingbaycoastbank-com\/"},"comments_num_v2":"0 comments","publishpress_future_action":{"enabled":false,"date":"2026-04-28 13:11:31","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/posts\/795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/comments?post=795"}],"version-history":[{"count":0,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/posts\/795\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/media\/1537"}],"wp:attachment":[{"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/media?parent=795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/categories?post=795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}