Interest Rates

Interest rates are still low, but for how long?

At Ashton Klein Mortgage & Realty Inc. we look forward to assisting you with a variety of home financing options. As dedicated loan consultants, we can offer you personalized home & commercial loans that would complement your current life style and business need. Whether you have an adjustable-rate loan and want to change it to a fixed-rate loan, for more certainty in the future, or if you want to change a fixed-rate loan to an adjustable-rate loan to reduce current monthly expenditures, we are only a phone call away to assist you and answer all your questions.

Fixed Rate Mortgages

In a fixed rate mortgage the principal and the interest remain the same for the entire life of the loan (Property taxes and special assessments may change). Its main advantage is consistent monthly payments that is unaffected by the market fluctuations. This is a good option if you are planning to stay in that house for a long time. The only disadvantage being that these loans are priced higher than other loan programs.

Adjustable Rate Mortgages

An adjustable-rate mortgage (ARM) means that the interest rate changes over the life of the loan — according to the terms specified in advance. The interest rate and the monthly repayment would be less than with the fixed rate mortgage. Most ARM programs do offer “rate cap” protection, which limits the amount of rate increase for both each period and over the life of the loan. ARMs are usually priced lower than fixed-rate mortgages so you can increase your buying power and lower your initial monthly payments. If interest rates go down, you’ll enjoy lower payments. Usually an ARM is the best choice for homeowners who plan to relocate. ARM monthly payments can increase if interest rates go up.