How much can you afford?
Adjustable rate mortgages are on the rise, and with rates starting as low as 3% with a 5 year fixed rate it is very attractive. This rate is about 2% lower than the 30 year fixed rate mortgages and makes a buyers ability to qualify for more home a bit easier.
BUT WAIT .... isn't this the "scam" that got us into trouble during the housing crash?? Lenders have not forgotten about the risks associated with these mortgages and fortunately there are limits to these programs. Gone are the days of interest only and teaser rate mortgages that reset to extremely high and unaffordable payments.
Today's adjustable rate mortgages will provide you with lower rates while making you fully understand the process and what the increases will mean in terms of their adjustments in your payment. You'll be able to afford to buy the home you want while knowing upfront what the future payments could be.
This is a great option to keep in mind as we head into the spring buying season. Between the future increase in fixed rate mortgages (which are still on the rise) and the price increase we are likely to see by April, having this information may make the difference between owning that special home and just wishing you could!
That's my 2 cents .... you can keep the change ;-)