With interest rates bouncing up and down, you may want to consider getting a 3- or 5-year adjustable-rate mortgage instead of a 30-year fixed-rate loan. The interest rate will be much lower, and you could save thousands of dollars over the life of the mortgage.
Should you get an adjustable-rate mortgage? You're a good candidate for an ARM if you only plan to stay in your home or keep your loan for five years or less. The average homeowner refinances every five years or less, so the odds favor you here.
You're also a good candidate if you can stomach the idea that after three or five years, your fixed interest rate will adjust either up or down, depending on where interest rates are at the time.
Since you'll want the flexibility of being able to refinance whenever, make sure your new loan doesn't have a prepayment penalty.
Ilyce Glink is the bestselling author of 100 Questions Every First Time Home Buyer Should Ask, and is the Managing Editor of Right at Home Daily.
Doing Your Final Walk-Through
Do you know what to check on your final walk-through of the property you're about to buy? Barbara Buchholz explains the purpose of your final walk-through, what to look for, and what to keep in mind.
Unless you've recently won the lottery, it's likely you'll
be getting a loan to pay for your new home. Here's
everything you need to know to get your application
approved. From Margaret Crane, contributor to
Newsweek, The New York Times and Money magazine
and author of Successful Homebuilding and Remodeling:
Real-Life Advice on Getting the House You Want without
the Roof (or Sky) Falling In.
There's little chance you'll have a successful closing
unless all of the details are in place. Here's some
information to help you get from offer to closing without
missing a beat. From Barbara Buchholz, former editor of
House & Garden Guides Magazine and co-author of Porch
Style and the New Homeowner's Handbook.
For most, making an offer for a home is the most
stressful part of the process. The information you'll find
here will help you figure out everything from how much a
piece of real estate is worth to how to win a bidding war.
From Margaret Crane, contributor to Newsweek, The
New York Times and Money magazine and author of
Successful Homebuilding and Remodeling: Real-Life
Advice on Getting the House You Want without the Roof (or
Sky) Falling In.
