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Although the
ARM (Adjustable Rate Mortgage) has been around
for a while, it is newer than you may think. It
was not long ago that we only had few options
when it came to choosing our home financing.
Today the modern homeowner is faced with
hundreds of options but usually only a few are
right for them. When deciding on whether an ARM
or fixed rate is better for you there are only a
few really important questions to discuss with
your mortgage professional. First, based on an
80% certainty, how long do you think you will be
staying in this mortgage? Second, at this time
what is more important to you, payment or
security? Lastly, What are the chances of rate
going dramatically up or down in the near to
intermediate future? Of course, there are other
factors to consider when evaluating what the
right mortgage is for you but if you can answer
these three questions with a relative amount of
certainty, you should be able to make an
informed choice on your financing type. |
