| Homebuyers have several loan options. Hence, | | | | However, if you prefer the flexibility of moving every |
| purchasing a new home hasnever been easier. | | | | threeto five years, you will save money with an |
| Individuals who cannot afford a down payment | | | | adjustable rate. |
| orclosing costs may take advantage of loan programs | | | | Pitfalls of Adjustable Rate Mortgages |
| that offer assistance. | | | | While adjustable rates offer many attractive features, |
| Furthermore, those hoping to obtain a low rate | | | | one majordrawback is that low rates are temporary. If |
| mortgage may consider aloan with an adjustable rate. | | | | interest rates continue to fall,you will not be subjected |
| Because of the initial low cost ofadjustable rate | | | | to the dangers of these loans. However, ifrates begin |
| mortgages, monthly mortgage payments are also | | | | to climb, so will your mortgage payment. Homebuyers |
| lower. However,low rate mortgages are short term. | | | | whocannot afford an increased mortgage are at risk |
| To avoid an interest rate hike,homeowners should | | | | of losing their home. Thus,if your goal is to remain in |
| refinance before rates begin to increase. | | | | your current home for many years,refinancing for a |
| Advantages of Adjustable Rate Mortgages | | | | fixed rate will offer predictable mortgage payments. |
| There are several advantages to accepting an | | | | How Soon Can You Refinance a Mortgage? |
| adjustable mortgage. Forstarters, a low rate mortgage | | | | Fortunately, home mortgage loans can be refinanced |
| allows buyers to purchase pricier homes,while | | | | whenever you like. |
| maintaining an affordable monthly payment. Moreover, | | | | Some lenders suggest allowing the loan to mature at |
| because ofrecord low rates, homebuyers who obtain | | | | least 12 months. |
| an adjustable rate mortgage canenjoy falling rates | | | | However, if you detect a change in market trends, |
| without refinancing their mortgage. Thus, they | | | | refinancing shortlyafter purchasing your home is a |
| avoidclosing costs and other fees. | | | | smart maneuver. Those contemplatingrefinancing must |
| Adjustable rate mortgages are also ideal for individuals | | | | be prepared to pay additional closing fees. Moreover, |
| who plan onmoving in a few years. Some people | | | | contactyour current lender and inquire of prepayment |
| enjoy the stability of living in oneplace for many years. | | | | penalties. |
| In this case, refinancing for a fixed rate is awise choice. | | | | |