When deciding between loan options, one of the first things to consider is whether you want a fixed or adjusted mortgage. An adjusted or adjustable rate mortgage can be an excellent choice for certain financial situations, while fixed rate mortgages might provide more advantages.
To help you decide which option works best for you, here are some more facts about these two mortgage types:
With adjustable rate mortgages, the interest rate varies over the life of the loan. Interest rates for ARMs typically start off lower than those in a comparable fixed-rate loan and rise as they accumulate over time.
Adjustable rate mortgages typically have a period for which interest rates remain constant, after which interest rates adjust on a prearranged periodic basis. Fixed rate periods can be anywhere from 1 to 10 years long.
The interest rate for a fixed-rate mortgage will remain unchanged over its entire lifetime. This means your total monthly payments are the same every time, which can make budgeting simpler for homeowners.
In addition to easier budgeting, they offer protection from outside economic factors like dramatic changes in mortgage interest rates.
When it comes to choosing a mortgage, there are multiple personal and financial realities to weigh. While your individual financial situation might fluctuate over time, interest rates can also rise or fall based on broader economic factors.
A fixed rate mortgage will help you create a rock solid budget, no matter how interest rates might change over time. However, an adjustable rate mortgage might be easier to qualify for because of their requirements, since the interest rates are not fixed and the lender may increase them as the market changes.
Keep these factors in mind and discuss your options with a financial advisor to determine the best possible choice for your financial needs.
Hi, I'm Ronald Bixby and I'd love to assist you. Honor, Respect, and Integrity...These are qualities that were instilled in a small town in upstate NY and reaffirmed in the US Navy. I was raised in a town called Horseheads. After graduating High school, I decided to see the world and I went into the Navy. Although I wanted to see the world, I ended up joining the submarine force and unfortunately, they don't have too many windows on subs! After getting out of the Navy, I found myself with an opportunity to get into the restaurant business and that's where I spent the next 30 years. I am blessed with an amazing wife, who is my rock, 4 beautiful daughters, and a son... Parenthood has a way of keeping you on your toes! However, thinking that I was missing something, I decided to make a change and started exploring the Real Estate business, and the more I looked into it, the more I knew this was the right profession for me. I like to help people and assisting a family buy or sell a home is a fantastic opportunity to do just that. If I can make someone half as happy as I am...it's a great day. Let me help you be happy.