Georgia Adjustable Fixed Rate Mortgage



It is true that the 2008 mortgage crisis affected the whole of the USA (and beyond). But in Georgia, the effects were more severe because at the time Atlanta, and other metropolis in the state, were going through an unprecedented real estate boom driven by a sudden surge in the number of homebuyers. In fact, projections indicated that there would be a consistent rise in demand for housing for the next two decades.


Sadly that did not happen. Instead, many people lost value in their homes. By 2009 the median house price was just $125,000 and many mortgages were already underwater. At the heart of the crisis was mortgage interest rates. Homebuyers who chose certain types of loans were affected adversely because of how their interest rates fluctuated based on economic conditions. That goes to show that choosing a mortgage with the best type of interest rate can cushion you from such adverse economic effects. There are two types, a fixed-rate mortgage (FRM) and an adjustable-rate mortgage (ARM). Want to know more about Georgia adjustable fixed rate mortgage? Contact Moreira Team today for the latest on ARM and FRM mortgages.


Whether to choose an ARM or FRM mortgage depends on the prevailing market conditions. The difference between them is that the interest rate charged on a FRM remains constant over the whole duration of the loan. On the other hand, interest rates charged on ARM loans usually change depending on the market conditions.


So at what point should you consider one over the other? Luckily for you, we have all that information and more right here on Moreira Teams website. We will tell you all about the benefits and drawbacks of each and when to pick one over the other.



Georgia City Mortgage Service Areas