Rates on Upward Trend
It is no secret that mortgage rates have been on an upward trend this year. To buyers, they’re weary of higher payments but we’d like to clear up some uncertainty that can save you hundreds per month. Adjustable rate mortgages or ARM’s are still an option to keep your payments in check while giving you security in your home. ARM’s are 30 year loan programs with advantageous fixed rates for the initial period of 5,7, or 10 years and then the rate fluctuates with the market thereafter. The average life of a loan is less than 5 years, especially for first time home buyers. In this instance, buyers can likely save half to a whole percent on their interest rate and never face the risk of the rate changing. On a $400k loan, that’s over $2k per year. ARMs were heavily criticized during the housing crisis and rightfully so. However, the programs didn’t harm anyone, the shady practices by lenders did. When the terms are understood, homeowners can save thousands per year without sacrificing peace of mind. Check out your options and save!