Buying a home is not a one size fits all transaction. When it comes to getting a mortgage, do what’s best for you and your financial situation. That means doing a little homework before you start shopping around.
An adjustable rate mortgage (ARM) means the interest rate you pay fluctuates according to movements in the index rate over the life of your loan. With a fixed rate mortgage (FRM), you pay the same interest rate the entire term of your loan. That is commonly 15 or 30 years.
Legislation is in place to protect borrowers from lenders who are looking to direct them toward high interest or high risk loans, but there are lenders out there who may want to do what is easier for them — not necessarily best for you.
If you shop around and talk to different banks or mortgage brokers, you may find that some offer better deals with FRMs than ARMs. Many lenders see 30-year or 15-year fixed mortgages as the best route for home buyers… but again, buying a home isn’t something that is one size fits all.
Are you someone who never stays in one place for too long? Or are you looking for a starter home that you know you’ll only be in for a few years? In that case, an ARM might make more sense. But if you found your forever home, a place you know you’ll want to retire in, a 30-year or 15-year fixed mortgage may be best.
Whatever your situation may be, find a lender who will listen to what you want and have your best interests in mind. We here at Home Reliance Capital want to help you do what is best for you. We know that one size does not fit all and we can find the loan that fits your needs. Contact us today to get started.