Homes for Sale in Santa Cruz – Understanding Fixed-Rate Mortgages

Posted by Lauren Spencer on Saturday, October 30th, 2010 at 11:01pm.

When people think about buying one of the homes for sale in Santa Cruz, many first research mortgage rates, mortgage loans, how they work and what it might cost them. However, with the many loan types available and all the technical jargon used to describe them, how do you know which one is best for you?

Fixed-rate mortgages are one of the most popular and classic form of loans for those buying homes for sale in Santa Cruz. Why?

Pros and Cons of Fixed-Rate Mortgages

Like anything else, fixed-rate mortgages have pros and cons.  Understanding the benefits and issues can help you decide whether the fixed-rate mortgage is the right loan for you.

• Fixed-rate mortgages protect you from rising interest rates, which is especially helpful if you plan to live in the home for more than five years. With most loans, mortgage rate changes can somewhat, or greatly, affect your monthly payment.

• Because fixed-rate mortgages don’t change, you’re better able to budget and plan. For example, if your mortgage payment is $900 a month, you know that, for the length of your mortgage terms, you will always pay $900 a month.

• When interest rates are low, fixed-rate mortgages are very affordable.

• When interest rates are high, fixed-rate mortgages can be expensive.

• If interest rates go down, your payment doesn’t.

• The interest, and thus the payments, on fixed-rate mortgages are typically higher than interest and payments on adjustable-rate mortgages.

For many looking to buy one of the homes for sale in Santa Cruz, a fixed-rate mortgage is the best type of loan. However, before you run out and sign the papers, make sure it’s the best mortgage type for you.

If you’re looking for a great home, I can help. Call me at 831.662.6522 or email me at for more information visit my website at


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About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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