When to Get a Fixed Versus Adjustable Rate
It is important to pay attention to whether your mortgage rate in Texas will be fixed or adjustable. An adjustable rate may changes once per year after a fixed period of time. With a fixed interest rate, the loan payment and rate will remain the same throughout the life of the loan. Generally, an adjustable rate is a smart idea if you plan to sell or refinance within a few years or if you expect interest rates to decrease within the next few years.
If you opt for an adjustable rate, pay close attention to the maximum rate and payment that the loan can adjust to. You should be able to afford a worst-case scenario. If not, it is safer to opt for a fixed rate loan.
Additional Questions About Texas Mortgage Rates?
Applying for a mortgage in Texas can seem complicated. There are some terms and concepts that you need to learn about and understand before you apply. However, once you understand more about the points discussed here, you will be able to make a more informed decision about which loan you should apply for. For more information or questions about mortgage rates in Texas, call Joel Richardson today at (512) 637-0932 or fill out our online contact form.