I'd like to talk about another mortgage myth currently going around - that ARMs are bad for consumers, and the cause of the subprime mortgage problem. Not true.
ARMs can be GREAT loan products for the right situation. For example, if a homebuyer only expects to own a particular home for about 5 years, a 5/1 ARM could offer significant interest rate savings with little risk. A 5/1 ARM acts like a fixed rate loan for 5 years, then adjusts on 1 year periods. Right now, 5/1 ARM rates are about 0.7% BELOW 30-year fixed rate mortgages. That is a savings of about $75 every month on a typical Tallahassee area home. Over 5 years, that equates to $4,500 in interest savings! How much gas could that buy you in Tallahassee?? Quite a lot!
What caused trouble for some subprime borrowers were ARMs that started with an artificially low "teaser rate", and drastically adjusted upward within a few months to payment amounts that the borrower could not make... bad advice and predatory practices from the lender, or bad judgment by the borrower.
In considering any mortgage, it is important to discuss your situation with a trusted real estate professional and reputable mortgage lender. True professionals will always make sure you hear sound and unbiased advice. Call Terance Keenan and his Team if you are considering a Tallahassee home purchase - 850.445.2476
Free Home Valuation | Your FICO score | Local Weather | Auto-MLS Search | Top Talla Buyer Tips | Real Estate News Center | Preserve & Conserve | Mortgage Lenders | Discount Foreclosures | 5 Seller Secrets! | Gilchrist Special Deal | TallaHome NewsLetter | MLS Quick Search | Sell In 2012 ! | Home Sellers | Luxury Homes | Buy a Distress Home | Recent Northeast Sales | Recent Northwest Sales | Recent Southeast Sales | Recent Southwest Sales | Recent Townhome Sales | Tallahassee Recent Sales | 5 Most Expensive Sales | Tallahassee PreForeclosure | Deals Under $150,000 | Investors + Cash Flow | Distress and Foreclosure Sales | Fastest 5 Sales | FREE Investor Seminar | 5 Selling Truths in 2012 | UpscaleDistressHome | College Distress Homes | Move-Up Program | Thank You! | Find Your Home Value | Closing Costs | Home Buyer Checklist | Buyers | National Real Estate News | Featured Homes | Search REALTOR.com® | Welcome | Loan Programs | Mortgage Shopping | TallaHome Blog
Copyright © 2012 Susan Byler and Terance KeenanPortions Copyright © 2012 a la mode, inc.Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site MapAll rate, payment, and area information are estimates and approximations only.
