Adjustable versus fixed-rate mortgages is a fixed or adjustable-rate mortgage right for you. Let’s take a look at the pros and cons. A fixed-rate mortgage has the same interest rate, and monthly payment the entire term of the loan, which is usually 15 or 30 years if rates rise. The borrower is protected against an increased fixed rate.
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ARM versus Fixed-Rate
Mortgages make budgeting easier since they offer stable monthly payments, an adjustable-rate mortgage, or arm features lower rates early on in the loan, but these rates can be adjusted in the future as stated in the mortgage agreement. An arm offers, a lower initial monthly payment to the borrower, which is a benefit. If you don’t plan on living in the home for an extended period.
That said with an arm monthly payments can go up before choosing to ask yourself these questions. What is the future outlook for interest rates? How long do you expect to stay in the home if interest rates rise? Can you afford a higher monthly payment? If you have any questions, ask your lender and always make sure you clearly understand all the terms and conditions of whichever loan you choose.
One of the reasons to call the Agardi Team if you want to buy a home or have one to sell is:
Not only do we sell our clients’ homes for more money and faster than the average area agent, but your home is also more likely to sell. According to 2015 MLS statistics, only 71% of area homes sold during their listing term. Compare that to our 95% of homes listed that sold before the end of the listing term. YOUR HOME SOLD GUARANTEED OR WE’LL BUY IT*
To discuss the sale of your home, call The Agardi Team at 718-755-2882 and start packing!
*Agardi Team and the seller have to agree on the price and the closing date.