Adjustable Rate Mortgages


If you're in the market for a new house, you're probably in the market for a new mortgage. When considering your financing options, you'll want to review many different things about the loans offered to you. There are many different kinds of home loans available and understanding what you are offered by a lender is critical to knowing whether or not that financing option will work for you.


Adjustable-Rate Loans (ARMs), also known as variable-rate loans, often offer a teaser rate for the initial period of the loan. This introductory interest rate is usually lower than rates offered for fixed rate mortgages. The interest rate will fluctuate over the life of the loan based on market conditions. Changes in rate happen at certain time periods, and the lender can set both a maximum and minimum on the rate of fluctuation.

An ARM could be a good financing option if:
 - ARM interest levels are significantly below fixed-rate interest rates.
- You don't plan on staying in the house for more than five years (especially if you have a locked-in rate for the first three, five, or seven years).

Watch out for ARM offers if:
 - Initial rates are comparable to fixed-rate loan rates
- High closing costs on these loans offset the low interest rate

Call me today to learn more about how to investigate what kind of financing will work best for your personal situation. I'm always happy to help.
Location: 1390 Noriega St, San Francisco, CA 94122, USA

Comments

Post a Comment

Popular posts from this blog

First Time Homebuyers: What They're Looking for and What They Need to Know

Now that the housing market is picking up once again, a growing number of first-time homebuyers are jumping in, attracted by relatively low home prices in some areas and historically low mortgage interest rates. In fact, many first time homebuyers have discovered that for the first time in years it’s actually cheaper to own a home than it is to rent one. The Joint Center for Housing Studies at Harvard recently reported that the median priced home in the U.S. (when calculated in today’s dollars) is roughly half as much as it was in 1990! And as rents have steadily risen in recent years, the Harvard study found that mortgage payments on the median U.S. home is now 23 percent less than rent payments for the same home. So as new buyers look to take advantage of this great opportunity, what are they looking for in their first home – and what do they need to know about buying real estate for the first time? We thought it would be interesting to take a look at the wants an...
Read more about this entry »»»»

What You Need To Know Before Selling Your Land

Image
  If you’ve got a piece of land that you want to sell, the process is relatively simple. Unlike selling homes and developed property, selling land is a much less involved process and can be done in far fewer steps. That doesn’t mean, however, that there isn’t anything you need to know before you sell your land to an interested buyer.   On the contrary, there are at least a handful of tips that you can prevent potential problems and make the whole thing go a lot smoother. In case you want to sell your land in the most efficient, profitable manner possible, here’s what you need to know before beginning the process.   1.  Zoning Laws Zoning laws are huge when it comes to buying or selling land. Especially if your buyer wants to alter the land in any way by drilling a well, building structures, or harvesting resources, zoning laws could come into play.   Rural land does tend to have lax zoning laws but there could still be restrictions on any of the actions listed a...
Read more about this entry »»»»

Culinary Adventures: Foodie Delights in San Francisco’s Trendiest Neighborhoods

Image
  San Francisco is a paradise, for food enthusiasts providing a plethora of dining options in its neighborhoods. From the sourdough bread to rated restaurants there’s something to please every palate.   Ms. San Francisco Real Estate is here to assist you in navigating the citys districts and finding your home close to your preferred flavors. Whether you’re into cafes or renowned cuisine San Francisco has a neighborhood tailored for you.   So get ready to satisfy your hunger and explore the offerings of San Francisco fashionable areas!   North Beach; A Taste of Italy North Beach immerses you in an ambiance with its quaint cafes bustling bakeries and family owned trattorias. Molinaris;  Delight in dishes and cozy atmosphere at Molinaris. This beloved eatery has been a gem for generations serving up meals in a welcoming setting. Testa Bakery;  Treat yourself to some of the focaccia and cannoli in town at Testa Bakery. Their baked breads and pastries are a deli...
Read more about this entry »»»»