TOD's Tips On Taking Advantage of Low-Interest Rates!
Should I Get a fixed rate or ARM?
Mortgages have either fixed interest rates or adjustable rates. Fixed-rate mortgages lock you into a consistent interest rate that you’ll pay over the life of the loan. The part of your mortgage payment that goes toward principal plus interest remains constant throughout the loan term, though insurance, property taxes and other costs may fluctuate.
The interest rate on an adjustable-rate mortgage can change over time. An ARM usually begins with an introductory period of 10, seven, five or three years (or even one year), during which your interest rate holds steady. After that, the rate may change periodically.
TOD’S TIP: ARMs usually offer lower introductory rates. But your ARM rate can rise after the introductory period ends, causing monthly mortgage payments to go up — substantially, in some cases. In the current climate, you may want to lock yourself into a great rate while you can!
TALK TO YOUR LENDER TO COMPARE FIXED RATE OR ARM LOANS!