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District of Columbia Mortgage Rates

District of Columbia Mortgages and Mortgage Loan Rate

The District of Columbia, or D.C., is a bustling geographic area. With the nation’s capital within the boundaries of the district, the area is a hotbed of government work and work related to the government. Higher education, health care and the arts are big draws, and whether for work or for pleasure, many of the people coming to D.C. are commuters arriving from nearby states. While you might think this would create a weak housing market, just the opposite is true. Home prices are at a premium, averaging between $300,000 and $600,000. With some searching though, great deals on desirable homes can be found, with prices as low as $150,000. If all this sounds enticing, maybe it’s time to start researching District of Columbia mortgage products and lenders.

District of Columbia Fixed Rate Mortgage

Back in the day when workers stayed at the same job throughout their careers and families had the same address until the kids went off to college, the fixed-rate mortgage (FRM) was synonymous with stability. For the entire loan term, payments and the rate of interest were unchanged. And that’s the way FRMs still are today.

The 5/5 & 5/1 Adjustable Rate Mortgage

That same stability for years 1 through 5 is what you get with the 5/5 or 5/1 ARM. But then, beginning with the sixth year, interest rates adjust and therefore, monthly payments adjust as well. With a 5/5 ARM, rate adjustments occur every 5 years. With the 5/1 ARM, rates adjust annually.

Mortgage Refinancing in District of Columbia

Refinancing has many benefits. Many homeowners do it to lower their monthly payments. Homeowners with equity in their homes can borrow against those homes and that typically costs less than borrowing money from elsewhere. When that money is used to pay off debt, there’s the added benefit of being able to deduct the interest. Interest paid on credit card debt is not tax deductible.

Understand that when it comes to new and refinance mortgages, you have many options. Interest rates and points charged will vary which is why it’s important to carefully review the terms of each. That’s the only way you can make an educated decision as well one that benefits you now and in the future.

Popular Areas in District of Columbia

Washington
Washington DC