Consider an adjustable-rate mortgage if you’re in the market to buy a home.
In today’s changing real estate market, which mortgage product is best for you? Finding the best mortgage is all about the numbers and what best fits your situation. The classic 30-year mortgage may not be what you need right now, but the adjustable-rate mortgage (ARM), which is making a comeback, may be the right choice for you. The average person spends between five to seven years in their home before moving, so why not get an ARM? Many times, you’ll get a better rate with an ARM, and it usually has a longer amortization period of 20 to 25 years.
Take a look at your current monthly payments; if the numbers make sense, then it doesn’t hurt to get an ARM. If you don’t like where your loan adjusts to after five years, then you can always refinance it back to a 30-year loan, sell the property, or do a 1031 exchange.
If you’re thinking about buying a home, or if you have any questions about adjustable-rate mortgages, give me a call or send an email. I can connect you with a ton of great lenders who can help you. Hope to hear from you soon!
