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Taking Advantage of Adjustable Rate Mortgages

If you’ve been in the market to purchase a home, you’ve undoubtedly heard terms like “fixed-rate” and “adjustable-rate,” but which is best for you?

The low initial cost of an adjustable-rate mortgage, or ARM, is tempting to many homebuyers, but they do carry more uncertainty than the alternative. However, the current economic climate has home interest rates on the rise, and an adjustable-rate mortgage allows you to lock in the lowest possible interest rate for a practical amount of time, before it begins to increase.

Adjustable-Rate Mortgages – What You Need to Know

Pros

Cons

Fortunately, for those prospective homebuyers who do not plan on staying in one place for more than 5, 7, or 10 years, most of the drawbacks of an ARM can be avoided. Savvy buyers can lock in the lower initial interest rates that an ARM offers for several years, and then sell before the rate begins to adjust for the rest of the term. Most homeowners tend to move within 7 to 10 years of buying a house anyway, making this a great way to save for many people.

Let Us Help

If you’re unsure whether an adjustable-rate mortgage is right for you, the loan experts at Butler Mortgage are here to help. Call us today at 407-931-3800 to schedule a consultation with one of our loan originators who will be happy to walk you through each step of the mortgage process.

407-931-3800

Request a FREE consultation

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