How to Navigate Mortgage Options in 2025: What East Bay Buyers Need to Know

Mortgage lending has changed dramatically in the past few years—and 2025 is no exception. If you're buying a home in Alameda or Contra Costa County this fall, understanding your mortgage options could save you tens of thousandsover the life of your loan.

Here’s what East Bay buyers should know heading into late 2025.

🏦 Fixed vs. Adjustable: Which Is Right for You?

• 30-Year Fixed-Rate Mortgage:
  Still the most popular option for buyers who value stability. Rates are hovering around 6.5–6.75% as of August.

• 5/1 or 7/1 ARM (Adjustable-Rate Mortgage):
  Starts with a lower rate—around 5.9%—but adjusts after the intro period.
  ✔️ May work well for buyers who plan to sell or refinance within 5–7 years.

💸 Rate Buydowns & Seller Credits

• Temporary Rate Buydowns (like 2-1 buydowns) are growing in popularity in the East Bay.
  Sellers or builders offer to lower your interest rate for the first year or two.

• Permanent Buydowns involve paying upfront points to lock in a lower long-term rate.
  Ask your lender to model both options.

🔍 Local & First-Time Buyer Programs

• CalHFA and some city-level assistance programs (especially in Oakland, Richmond, and Concord) are offering:

  • Down payment help

  • Reduced PMI options

  • Forgivable second loans

Always check eligibility based on income, household size, and location.

🧠 What East Bay Buyers Should Do Now

1. Shop lenders, not just rates—local credit unions and mortgage brokers may have special portfolio options.

2. Get pre-approved early, especially in competitive markets like Alameda, Lafayette, and Pleasant Hill.

3. Ask your agent (🙋‍♀️ us!) about current seller incentives on East Bay homes.

Bottom Line:
The right mortgage strategy could open up buying power or long-term savings. We’re here to help you sort through the options that make sense for your life, your timeline, and your home goals.