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Major Improvement in Real Estate Market for BuyersSeptember 20, 2022
For Better Rates, ARMs May Be the Right Choice Now
The spread growing between the 30 year fixed rates and Adjustable Rate Mortgages (ARMs) is making ARMs increasingly more attractive for their competitive rates.
The demand for housing has been peaking inside and outside of the city, while rates have moved against us. Historically speaking, rates are still very, very low and there are other options available to make your purchase more affordable.
Many of my clients are opting for ARM loan programs as this allows them to have a lower initial interest rate than they would with the 30 year fixed.
Some of the main reasons that many people are increasingly moving towards the ARM loan programs:
- The difference between the rates of 30 year fixed and ARMs have grown considerably over the past several months.
- Not wanting to pay for 30 years of stability in a property that won’t even be lived in for 10 years.
- There potentially could be a savings over time between paying a fixed rate mortgage and an adjustable rate mortgage which could be significant.
- They offer the same flexibility of being able to pay them down early with no penalty.
In my 20+ years of working in this industry, I have found that no two client profiles are the same. There are always differences between people’s needs and what would be the best fit for them. In a volatile market, it is crucial to understand all the best options available to you.
Don’t let an increase in rates stop you from buying. There may be a solution out there that makes sense for you.
Contact me today to learn more and get all of your questions answered.
PS – For more info on the growing popularity of ARMs, check out this CNBC article.