Realty News September 2017
 
Suzie & George Crudo
(407) 489-8953
Is an Adjustable Rate Mortgage Worth the Risk?
Photo: Sirtravelalot - Shutterstock

There are inherent risks involved in an Adjustable Rate Mortgage (ARM) vs. the relative predictability of a Fixed Rate Mortgage. So why would a homebuyer consider an ARM? Here are three situations where a homebuyer should give an ARM a closer look:

1. Planning to Sell Quickly
The main risk of an ARM is at the end of an introductory period when the rate adjusts. However, if you plan on using those savings to fund home improvements and sell before the introductory period is up to upgrade to a better property, an ARM may be a good financial decision.

2. You Need to Move Again
There are many reasons why someone would need to suddenly relocate. Perhaps you expect to move soon for work, or maybe there's a need to be closer to family. If a homeowner sells their house before the first rate adjustment, they could save a great deal of money on interest over a Fixed Rate Mortgage.

3. Low Monthly Payments
This is the most popular reason to seek out an ARM. If you are confident that you will be making as much or even more money in the future, you should consider getting a monthly payment that you can afford now and begin building equity.

A Fixed Rate Mortgage is usually the best home-buying strategy because long-term planning benefits from stability and predictability. But there are situations where an ARM makes more financial sense. Contact a lender to find out which loan is best for you.

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Suzie & George Crudo  -  (407) 489-8953 Realty News  -  September 2017 

Suzie & George Crudo, Weichert Realtors, 1787 W SR 434 , Longwood FL 32750
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The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice.
If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.
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