And how do you know which mortgage product is right for you?
2007-11-26 08:21:31 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
No they are not all bad. Right now the interest rates are pretty low so I am guessing that they have a higher chance of rates increasing in the future. So if the rates adjust, then you will have to probably have a higher interest rate.
Get a fixed rate mortgage when interest rates are low and get an ARM when rates are high and you suspect that rates will drop.
2007-11-26 08:32:25 · answer #1 · answered by Dom 5 · 0⤊ 0⤋
ARM's are fine products when used in the proper fashion. AN ARM may make excellent sense for an owner who knows full well that he will be selling within a specified time period, obviously before the low rate is scheduled to expire. However, for those who want home ownership over the long term, they are not the proper product.
2007-11-26 16:25:45 · answer #2 · answered by acermill 7 · 2⤊ 0⤋
Like all loan products, ARM's are designed to offer specific benefits and risks.
There are so many choices of loan products available that as a consumer you need an experienced professional to discover your specific needs and goals so that they may research and present all of your options and explain the pros and cons of each so that you may make an informed decision.
So how do you find someone who is more interested in helping you than they are in how much money they can make on your loan? Easy, interview at least 3 loan officers based upon recomendations from escrow officers, realtors, friends, and co-workers. Look for someone who spends more time digging for your specific goals and needs than they do selling you "the lowest rate" or one specific loanp program. Remember, these are sales people. Have the discipline not to make a choice until you have met with all 3. Understand that they will try to create a "sense of urgency" (i.e. "this rate may not be available if you don't apply with me today", etc.).
Some questions you can ask them to help you decide if this is someone with whom you want to build a lifelong relationship for all of your current and future mortgage lending needs are:
What led you to this career?
How long have to been a loan officer?
What is the source of most of your business?
What do you like most about this career?
What can I expect from you by way of communication throughout the loan process?
Ask for references, not just past clients, you want to check their referrral sources like Realtors, CPA's etc.
Chose your lending partner with the same care with which you'd choose your physician or you child's care provider.
Good luck!
2007-11-26 17:20:35 · answer #3 · answered by mazziatplay 5 · 1⤊ 0⤋
No, it depends on your situation.
We have bought a home and plan on staying for less than 5 years. We got an 5 yr ARM for a lower mothly payment for the time we plan on staying in the home than compared to a traditional 30 year loan.
This situation fits us perfectly.
2007-11-27 00:55:32 · answer #4 · answered by Chief02 2 · 0⤊ 0⤋