zillow.com - The good news about shopping for mortgages is that you have lots of options. Here’s a look at one of the many questions you’ll have to consider: Is an adjustable rate or fixed rate mortgage best for you?
Many home buyers focus on finding the lowest mortgage rate at the time they’re buying their home, and a five-year adjustable rate mortgage (ARM) often looks quite appealing to them. But it’s important to understand that an ARM rate adjusts at the end of the initial term. For example, a five-year ARM only has a fixed rate for the first five years; then the rate adjusts once per year for the next 25 years. This could be a good option if you plan to be in the home less than five years.
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