1. What is the difference between a Fixed Rate Mortgage and an Adjustable Rate Mortgage?
   
2. Are rates going up or down?
   
3. How often do interest rates change?
   
4. How much do I have to pay up front to apply for a mortgage loan?
   
5. How long will the process take?
   

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1. What is the difference between a Fixed Rate Mortgage and an Adjustable Rate Mortgage?

A: A Fixed Rate Mortgage has an interest rate which remains constant over the life of the loan. With this type of mortgage your monthly payments for principle and interest never change. Fixed rate mortgages vary in terms of length and are typically available in terms of 10, 15, 20, 25, or 30 years. Adjustable Rate Mortgages or A.R.M.’s as they are commonly referred to generally have start rates which are substantially lower than fixed rate products. However, the interest rate changes at specified intervals depending on changing market conditions; if interest rates go up, you monthly mortgage payment will go up accordingly. However, if interest rates go down, your mortgage payment will drop also.

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2. Are rates going up or down?

A: The bond market changes daily. No one can predict fluctuations in the bond market and therefore cannot predict which way rates will go.

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3. How often do interest rates change?

A: Interest rates change daily and sometimes several times daily based on the bond market. Rates are also dependent on the type of mortgage loan and the loan balance.

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4. How much do I have to pay up front to apply for a mortgage loan?

A: South Coast Lending requires up front payment for the appraisal of the property. The amount can vary depending on property type, size, and geographic location.

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5. How long will the process take?

A: It usually takes about 15 – 30 days to process a refinance transaction. Once we receive your loan application the processor assigned to your loan will be in continual communication with you regarding your loan status.