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Should I Get a Fixed-Rate or Adjustable-Rate Mortgage?
(Santa Barbara Buyers Guide)
Choosing between a fixed-rate mortgage and an adjustable-rate mortgage (ARM) is a major decision for buyers in the Santa Barbara real estate market.
Fixed-Rate Mortgages
● Rate and payment remain the same for the entire loan term
● Ideal for buyers planning to stay long-term
● Easier budgeting and peace of mind
Adjustable-Rate Mortgages (ARMs)
● Lower initial rate for a set period (e.g., 5, 7, or 10 years)
● Rate adjusts after the initial period based on market conditions
● Works well for buyers planning to move or refinance
Key Questions to Ask
● How long do I realistically plan to own this home?
● Can my budget handle potential rate increases?
● Do I value stability or flexibility?
Helpful comparisons:
● CFPB loan comparison tool: https://www.consumerfinance.gov/owning-a-home/compare/
● ARM explanation: https://www.consumerfinance.gov/ask-cfpb/what-is-an-adjustable-rate-mortgage-arm-en-140/
At Etherton Real Estate Group, we help buyers understand how financing choices impact affordability and long-term comfort.
Start your Santa Barbara home search: https://www.ethertonrealestate.com Meet Justin: https://www.ethertonrealestate.com/agent-profile/justin-etherton-13844616
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