Florida Adjustable Fixed Rate Mortgage


There are several types of mortgages that you can take out to buy a house in Florida. And one decision that you will have to make is whether to go for a fixed-rate mortgage (FRM) or an adjustable-rate mortgage (ARM). Many people don’t fully understand how one can be better than the other. That is why we here at Moreira Team have thought it necessary to give you some basic knowledge that will help you make the right choice. Be sure to contact us for specific, personalized information on the current Florida adjustable fixed rate mortgage. Our crew will advise you on which type is most suitable for your long-term goals.

With an ARM, you will be charged varying interest rates over the life of the loan. The rates charged will depend on the current market interest rates. On the contrary, with a FRM you will pay a constant interest rate over the duration of the loan. The value is determined by the market rates at the time you take the mortgage loan.

It would be inaccurate to say that in Florida one type is better than the other. Your most ideal choice depends on factors like how long you are planning to stay in the house and how the market is expected to perform in the short and long terms. For instance, if you plan to stay in the home for a fairly short time (seven years or less), an ARM sounds like a better idea. But if you are planning to stay for a longer period, a FRM may serve you better.

The average interest rates in Florida don’t fluctuate much in the short run. But you should know that they are at a historic low. So chances are they will only increase, meaning over the long term, homeowners with ARMs are likely to pay more. For a more accurate and personalized opinion, please contact us and our team will analyze your situation and advise you accordingly.



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