Today's mortgage rates Butte CA
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In this Article we shall focus on answering some common queries of Butte CA mortgage borrowers:
What is 10/1 ARM for Butte CA Mortgage Borrowers?
A 10/1 ARM means that the rate is going to be fixed for first 10 years of the mortgage. After 10th year end that is 120th month. Before the 121st payment is made the rate will adjust once a year and whatever that rate be. It shall continue throughout the year at the same rate with no change. There after it shall change once again before the 132nd month payment or beginning of the 12th year and whatever the rates adjust to be. It shall continue at the same rate for coming 12 months and this pattern shall continue for 30 years as the payment on 10/1 is calculated on a fully amortizing basis for 30 years. Meaning that should the borrower continue on a 10/1 ARM without refinancing for 30 years. The principal balance will become zero at the end of the 30th year.
Now a question arises as to against what do the rates change every year. There has to be some link to something against or what is it that interest rates follow against which they change.
These adjustable rates are tied to Government treasury indexes. Like LIBOR (London Inter Bank Offering Rate) or COSI (cost of savings index). These would be mentioned documented on the borrowers Note and shall be explained by your Butte CA mortgage expert.
Why should Butte CA Mortgage borrowers be looking for 10/1 ARM rates?
Truly speaking its how the borrower wants to manage his finance and how your mortgage expert feels you should and you may be asked to think of such an option. 30 year is called psychological interest rate. We all know that we will refinance our home and many things would change as the year moves on but we still want that 30 years fixed mortgage because we want to have predictable payments.
Now a 10 year is an alternative because 10 years is a very long time and it comes with a lower rate than 30 years.
Your Butte CA mortgage expert will be the best person to guide on the matter.
You can contact your Butte CA mortgage expert to get you the lowest mortgage rate on your refinance.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower
30 yr fixed refi 3.807% APR 3.775%Rate | At 0 pts
20 yr fixed refi 3.500%APR 3.500% Rate | At 0 pts
15 yr fixed refi 3.044%APR 3.000% Rate | At 0 pts
10 yr fixed refi 2.940%APR 2.875% Rate | At 0 pts
Artical by Roger Shanker
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