Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

 

Today, we'll talk about  3 Reasons Why Using an Adjustable  Rate Mortgage is Better

 

 

Let's begin with the definition of an adjustable-rate mortgage

 

An adjustable loan with a variable interest rate is known as an adjustable-rate mortgage. An ARM often has an introduction period lasting three, five, seven, or ten years that begins with a low fixed rate. The interest rate you pay is subject to periodic adjustments based on a benchmark index once the promotional period has ended.

 

Your rate and mortgage payment will go down if the index is lower than it was when you applied for the loan. Your rate and mortgage payment will increase, though, if it is greater. After the introduction period, ARM rates continue to fluctuate on a regular basis — often once every six months — until you sell the house, refinance, or completely pay off the mortgage. ARMs typically have terms of 30 years.

 

When does it make sense to use an adjustable-rate mortgage?

 

There are several situations in which an ARM may be a wise decision.

 

1 You are not staying there too long...

You aren't purchasing a permanent residence. An ARM could save you money if you move in a few years. The lower initial fixed rate would be advantageous to you, and you would sell the house before the adjustable term began.

 

2 You want to pay it off as quickly as possible...

You want to quickly pay off the mortgage. Imagine that you anticipate receiving a cash windfall, like an inheritance. With an ARM, you might save money by taking advantage of the low introductory fixed rate and then using the windfall to pay down the entire sum. The funds should ideally be received before the fixed-rate period expires.

 

3 You don't have much money initially...

You prefer low initial payments and are okay with the possibility of greater payments over the road. Additionally, the benchmark index could decline, which would result in a reduction in your rate after the defined time. 

 

Why an arm may not be for you?

An adjustable-rate mortgage is a viable alternative, but there are also some strong reasons why it might not be your best choice.

 

If you are not a risk-taker?

Then an ARM might not be for you.

 

The ability to feel safe is something that many of us value. Therefore, it is quite acceptable if the idea of taking chances makes you uncomfortable. You can choose to get a fixed-rate mortgage rather than an ARM, which can provide you piece of mind because you'll know precisely what your monthly payment will be for the life of the loan. Fortunately, your mortgage is something you don't have to take a risk on.

 

It's crucial to carefully weigh your alternatives before applying for a mortgage to make sure you choose the option that will work best for your financial position. Don't forget to enlist the assistance of a good real estate agent to help you navigate the decision-making process!

 

Finally, 

Don't rely on an adjustable mortgage just because you read this post... Nobody has a crystal ball to see where interest rates will be in the future, 

You need to make a careful decision based on many factors. 

Looking forward to speaking with you.

 

Always consult with your real estate agent about your home inspection results and the options you have inside the sales contract that you've signed. 

 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

 

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540