Fresno CA Mortgage Calculator
In This Article you will learn:
- How a 30 year current Fresno CA rate of 3.63% would affect your mortgage
- How Current 15 Year Fresno CA Fixed rate would impact your mortgage
- How a Fresno CA 5/1 ARM at 3.07% would affect your mortgage
- How a 30 year current Fresno CA rate of 3.63% would affect your mortgage
A 30 year Fixed mortgage from 2008 to 2016 was averaging at 3.5% in Fresno CA. It dipped occasionally to 3.25% for 3 months. That was a small window that opened up due to Greek economic crisis as a Global factor. On the whole, despite occasional drops, it has pretty much averaged at 3.5% and occasionally moving up in the year 2017 and edging north between 3.5% and 4%. Primarily because the fed decided to increase the rate a bit.
A 30 Year Fixed Mortgage is primarily a borrower’s Psychological rate. Borrowers in Fresno California refinance 10-15 times on an average during their life from the time they take the first mortgage. That is why a 30 Year Fixed rate is called Psychological rate. Bank knows that regardless of how many times a borrower will refinance but they will still go for 30 years. It offers psychological satisfaction to the borrower that his payment is fixed regardless of what happens in the borrower’s life. Precisely why borrowers are not aware that 30 Year Fixed is the most expensive rate a borrower gets. All other mortgage rates are pegged to the 30 years and they are all lower than a 30 Year Fixed rate.
It makes sense to have a 30 Year Fixed mortgage for psychological comfort to know regardless that borrowers housing payment is fixed. Everything else around it can change but not the house payments so it offers predictability and hence allows the borrower to manage all other finances revolving around house payment accordingly.
Any time the borrower is looking to save money. Borrower refinancing his home going back to 30 years mortgage. This is done many times by the borrower and is statistically proven because with time it’s not just the earning of the borrower that moves up but also his expenses. As a result of a borrower typically ends up refinancing and ends up managing his home debt and equity that builds up throughout the life of the loan as home appreciates in value. Here we are finding more information about mortgage refinance rates
The only time this faith of the borrower was shaken was in 2008 where home values were less and mortgage balance was high.
Even during those rocky times. There were mortgage borrowers who chose to stick to their home and housing payments. The ones who did so and the ones who did not do so realized that this vicious economic downturn had a cycle of 8 years that is from 2008 to 2016. So the values that existed in 2008 are what the values to their homes are today.
If instead of filing for bankruptcy and foreclosure. The same amount of money that borrowers felt that they lost in equity were to be put in CD would not have yielded the same value had the borrowers chosen not to vacate the house in the panic and would have stuck with their payments.
However many did not have a choice as they lost their jobs and there was distress all around because of layoffs.
Call Fresno CA expert below to get you the lowest mortgage rate on your refinance.
How Current 15 Year Fixed rate would impact your mortgage
The formula is not the same as Einstein’s formulae for Energy where he proved that E = MC Square but on the whole, it very much works like this. If you were to take a dollar of debt at 30 Year mortgage rate. You end up paying $3 as interest to the bank and $ 1 as your original principal repayment to the bank if you were to continue paying for 30 years. Meaning you typically end up paying 3 times the principal sum as interest to the bank in case of a 30-year mortgage.
Some borrowers manage their finances well. They wish to pay off the mortgage during their lifetime. A 15 Year mortgage speeds up the process of repayment. It carries a very low rate of interest because the borrower comes in that very exclusive bracket where the focus is now on mortgage repayment faster.
When you make your housing payment. The fund is split into two parts. The interest is what goes to the bank and principal is what goes towards reducing your mortgage balance. In case of 15 Years mortgage. The sum applied towards repayment of principal balance each month is more than the interest portion. This allows the borrower to pay off the mortgage faster.
Call 323-705-3191 Fresno CA expert below to get you the lowest mortgage rate on your refinance.
September 2017 Mortgage Rates Average
CURRENT REFINANCE RATES FRESNO CA
Product Rate Change
● 30 year fixed 3.63% ↑ 0.02
● 15 year fixed 2.99% ↑ 0.07
How a Fresno CA 5/1 ARM at 3.07% would affect your mortgage
ARM means Adjustable rate mortgage. Well if the rates adjust then they must have something to adjust against. Yes. Now you understand. ARM hinges on certain government indexes published daily in financial papers around the world and specific to a borrower they adjust as per his individual mortgage terms as discussed with Fresno CA mortgage borrower while taking a mortgage.
Banks and lenders have standard ARM products and its terms and conditions. A 5/1 ARM, 7/1 ARM, 10/1 ARM essentially denotes the grace period to the Fresno CA mortgage borrower as to how long his mortgage rates will be fixed and after how many years the rates will start to adjust.
So a 5/1 ARM means rates are fixed for 5 years of grace period. 7/1 ARM means rates are fixed for 7 years of the grace period and a 10/1 ARM means that rates are fixed for 10 years of the grace period for the Fresno CA mortgage borrower.
A borrower based on how he wants to manage his finances chooses amongst the product. ARM rates come with interest rates that are very low. Lower than 15 years fully amortizing fixed rate.
Borrowers in this category are either looking to move out of the house in times to come. It could be that the house has so much equity that there is no point going for 30 years mortgage but refinancing every three years for a 5/1 ARM or 7/1 ARM to keep paying as less as possible. This is typically the case with borrowers who have a million dollar mortgage or more. They always prefer ARM over fixed.
ARM rates after they cross the grace fixed period are tied to Govt indexes like COSI (Cost of Savings Index), LIBOR (London Inter Bank Offering Rate) and they are published every day in newspapers around the world. If you do not refinance before the grace period ends and your rates start to move up and down based on the index. You need to understand the market.
As of today, rates are typically moving up. So if you have an ARM and you let the fixed period expire it’s likely that your mortgage payment and the rate will move up. So you should look at refinancing.
Call Fresno CA expert below 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. You can even email at roger@affordable-payment.com
Article by Roger Shanker
