Hello everybody! Welcome back to Suburban Snacks, where we not only inform you of current Real Estate topics but also review a different food item every month! This month’s snack is protein chips! Before we review the snack, we’ll be informing you on whether or not adjustable-rate mortgages are starting to trend! So the share of mortgage applications with ARMs more than doubled last week compared to three months ago, according to the Mortgage Bankers Association. For anyone who doesn’t know, what is an adjustable-rate mortgage? Adjustable-rate mortgages or ARMs for short, start at one rate and then fluctuate after a set period of time. Buyers can lock in a lower initial interest rate and hope that it will not become too high later in the life of the mortgage. Many believe that these types of mortgages were the cause of the crash back in 2008. However, lenders say that they are much stricter about who qualifies for ARMs nowadays. Glenn Brunker, president of Ally Home, states, “As buyers continue to navigate today’s housing market and rising interest rates, many are considering adjustable-rate mortgages. ARMs can help buyers save money over a fixed rate because they often offer a lower monthly mortgage payment for the initial period of the loan, typically 5, 7, or 10 years.” Professionals advise that when determining whether to choose a fixed-rate mortgage vs an ARM, you should consider two things. First, how long are you going to be in the home? Staying in the home longer means you may be better off with a fixed rate. Second, consider your personal finances and affordability. If you are in the market to purchase a home and you have questions about the type of mortgage you should get, then we at Suburban would love to help! Do you like protein chips? Let us know in the comments below. That’s going to do it for us here at Suburban Snacks. If you have any questions or would like to get into contact with us feel free to check out our website at suburbanrealestategroup.com. Also, make sure to click the link below to follow us on Instagram. Thanks for watching, my name is Cade Olof and we will see you in the next one!
About the Author
Suburban Real Estate Group
Our team of experienced agents have facilitated the transfer of nearly $80 Million worth of Real Estate and currently manage over $30 Million worth of rental properties. By using the latest technology available in the industry, combined with their family values, buyers, sellers, and property owners can rest assured that their best interest is Suburban’s number one priority.