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Real Estate Tips
Financing Your Home >Watch Your ARMs Length

Most buyers know that first-year interest on Adjustable Rate Mortgages (ARMs) is typically lower than the interest on available fixed-rate mortgages. This makes ARMs easier to qualify for, but also requires that borrowers have some understanding about how such loans work, because there are significant details associated with the low first-year rate.

First, check to see how long the low rates offered on the ARM are guaranteed. After that period of time, the rates can go up two points a year to a typical rate cap of six points over the life of the loan. Lenders will usually require borrowers to qualify for a mortgage loan that is several percentage points above the actual initial rate charged on the ARM. This is intended to keep borrowers from becoming overburdened by debt. Some lenders may charge special fees or caps which can increase the cost of the loan. If you think that an ARM may work for you, it is a good idea to shop around.

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Real Estate Trivia
Q 
What Las Vegas hotel is famous for its casinos and is the largest hotel in the US.?

A 
With 5,012 rooms, the MGM Grand Casino is considered the largest hotel in the US.
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The Simpson Sells Family, REALTOR®, real estate agent and broker for Hayward, Cable, Barnes and Namakagon, Wisconsin home listings, property and land for sale - NUMBER1EXPERT(tm)

The Simpson Sells Family
Simpsonsells

13855W County Rd B
Hayward, WI 54843
Office: 715-634-5777
Fax: 715-634-5778
Toll Free: 800-634-8579
General mail box: info@bigbearrealtyofhayward.com
Peter Simpson: pete@simpsonsells.com

Living in the Northwood's brings good information to share with clients. I work 24/7 for you, and listen carefully to your needs, together we will find that perfect property. Every day provides the opportunity to meet with interesting people. I would appreciate the chance to work with you. Feel free to call me anytime 800-634-8579

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