James Jay talks about the difference between fixed rate mortgage and adjustable rate mortgage. The fixed rate mortgage and adjustable rate mortgage are both important depending upon the market and your financial expectations, each option will actually provide different benefits and drawbacks.
Quotes
"Choosing between fixed rate mortgage and adjustable rate mortgage of loans just depends on your individual situation and the interest rate that's going on at that time."
Show Notes
[00:03] Introduction of fixed rate mortgage and adjustable rate mortgage.
[00:15] Show Introduction.
[00:49] James Jay explains the benefits of using adjustable mortgage rates up until 2008 when fixed rate mortgage have higher rates. He advices that if you know you're only going to be somewhere short term. You are typically rewarded with a smaller interest rate and that is really the major benefit of having an adjustable rate mortgage.
[02:30] James Jay now explains the benefits of using fixed rate mortgage. He further discusses that fixed rate mortgages are controlled mortgages and easy to maintain and administer because of a lot of these factors. These are definitely the most popular loan types for first time home purchases as well as second or third or fourth time purchases for that matter.
[03:53] James Jay compares and contrasts fixed rate mortgage and adjustable rate mortgage. He goes on to say that adjustable mortgages are generally cheaper and result in savings when rates do fall. He also adds that fixed mortgages come with higher rates.
[05:13] James Jay goes in deeper to discuss fixed rate mortgage. He emphasizes to the importance of being prepared when it comes time to refinance. James Jay also advises to pay attention to where you are with your mortgage, whether it be three years, five years or longer, and know what your plan is to either refinance it and pay that one off or sell the home or be okay with what the rate adjusts to
[06:07] James Jay concludes by emphasizing the importance of choosing between fixed rate mortgage and adjustable rate mortgage. He also emphasizes that it just depends on your individual situation and the interest rate that's going on at that time. And that it is important to reach out to a lender or to contact James Jay to make a sound and informed decision. So if you have any questions you can visit his website at myhoustoninsideout.com
If you like this episode of the Houston Inside Out podcast, please don't forget to like, share, and comment! We appreciate your support and feedback!
Hosted on Acast. See acast.com/privacy for more information.
