| There is so much involved when buying a home that | | | | fixed rate mortgage is the best option right now for |
| no one could possibly handle all of that information. | | | | the average home buyer. Your interest rate will stay |
| However, there are a few things that I know that I | | | | fixed for all 30 years of your mortgage no matter |
| think you should know and I'm going to tell you right | | | | what. |
| now. I will discuss a few different types of interest | | | | An ARM rate will adjust each year depending on the |
| rates and recommend the one I think is best. Just | | | | current interest rates. If you have 5% for a rate and |
| remember that your situation might be different and | | | | the prime rate goes up 1% then so wont your rate. |
| require something other than what I recommend. | | | | Use a mortgage calculator again to see how much |
| This is a very bad economy and some have even | | | | your mortgage payment will change if the worst |
| called it a depression. I'm sure it at least feels like a | | | | happens. Then figure out how much you can afford if |
| depression for some people and for others it's just | | | | interest rates start to climb. There's usually a max set |
| another day. Well no matter how you're doing | | | | on how much your rates can go up and I think it's |
| financially the country is struggling and certain business | | | | usually only 2% at once and 6% over all. So raise the |
| moves should be made accordingly. | | | | rate by 6% to check the worst case scenario. |
| It's a great time to buy a home if you can afford one. | | | | All of the other types of loans have little twists to how |
| Use a mortgage calculator to see if you can afford | | | | they are better. However, if it's not the fixed rate |
| the monthly payment first and then you can start with | | | | mortgage then it will adjust each year. Interest only |
| the different types of loan available. Usually the current | | | | loans and ARM rates are both adjustable eventually |
| interest rate is locked into an interest calculator so you | | | | even though they start out fixed for a few years. Just |
| can use that to start. | | | | because you can afford it now doesn't mean you can |
| Interest rates are at an all time low right now because | | | | in 5 years and those 5 years will roll around quick. Be |
| of the economy. So would it make sense to get an | | | | careful and check everything before getting into a |
| ARM rate (adjustable rate mortgage) when rates can | | | | mortgage that your can't afford. |
| pretty much only go up from here? Of course not. A | | | | |