Adjustable Fixed Rate Mortgage in Florida
Should you get an adjustable rate mortgage (ARM) or a fixed rate mortgage (FRM) for your Florida home? That’s a very important consideration because each type comes with its advantages and disadvantages. Making the right choice will save you a lot of money in the long run. Which is why our team of dedicated mortgage experts is here to help you pick the better of the two. Give us a call today, and we will tell you which type of mortgage loan suits you best.
In case you need an overview, an ARM is a mortgage loan whose interest rate changes over time. It may go up or down depending on factors like changes in lending rates. On the other hand, the interest rate charged on a FRM is set when you take out the loan, and it will not change over the loan duration.
Typically, an ARM will start at a lower interest rate than a FRM. During this period (which may last for months or years) your monthly payments will be lower and affordable. But the lender may adjust the rate upwards.
With a fixed-rate mortgage, the rate charged on your loan remains the same. That makes it very predictable and easy to manage. But of course, if lending rates drop you won’t enjoy the new, lower interest rates as is the case with an ARM. The plus side is that your payments will not be affected by an economic crunch that affects the real-estate market.
Although Florida has enjoyed stable mortgage interest rates in the recent past, the state’s real estate market has had its fair share of ups and downs. In the long run, having the information about both adjustable fixed rate mortgage and FRM mortgage quotes, can be the difference between those who save and those who risk foreclosure. With the guidance of our highly experienced real estate staff, you can be sure that we will work with your current state of income and debts to determine which type of loan suits you best.
Florida County Mortgage Service Areas