

4,797,051
It's best to discuss and decide between buyer and their lender.
-
Gene Mundt, IL/WI Mort...
New Lenox, IL
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Abby Stiller
Cape Coral, FL
-
Carol Williams
Wenatchee, WA
-
John Pusa
Glendale, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Peter Testa
Danbury, CT
-
Mary Yonkers
Erie, PA
-
Richard Weeks
Dallas, TX
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
1,279,663
That depends on the needs of the buyer
-
Gene Mundt, IL/WI Mort...
New Lenox, IL
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Abby Stiller
Cape Coral, FL
-
Carol Williams
Wenatchee, WA
-
John Pusa
Glendale, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Peter Testa
Danbury, CT
-
Michael Jacobs
Pasadena, CA
-
Mary Yonkers
Erie, PA
-
Richard Weeks
Dallas, TX
-
Doug Dawes
Topsfield, MA
5,562,708
They're typically good for a short-term stint in one place/property.
I would strongly advise seeking the advice of a financial planner and a lender so you can make an informed decision.
-
Gene Mundt, IL/WI Mort...
New Lenox, IL
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Abby Stiller
Cape Coral, FL
-
Carol Williams
Wenatchee, WA
-
John Pusa
Glendale, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Peter Testa
Danbury, CT
-
Michael Jacobs
Pasadena, CA
-
Mary Yonkers
Erie, PA
-
Richard Weeks
Dallas, TX
-
Doug Dawes
Topsfield, MA
2,565,617
I've never been a fan of adjustable rate mortgages but they can work great if you don't plan on staying in the home long.
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Abby Stiller
Cape Coral, FL
-
Carol Williams
Wenatchee, WA
-
John Pusa
Glendale, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Peter Testa
Danbury, CT
-
Mary Yonkers
Erie, PA
-
Richard Weeks
Dallas, TX
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
785,430
When you plan to stay in the property short term.
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Carol Williams
Wenatchee, WA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Mary Yonkers
Erie, PA
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Mel Ahrens, MBA, Kelly...
Hood River, OR
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
6,775,997
When planning to leave in a few years.
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Carol Williams
Wenatchee, WA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Mary Yonkers
Erie, PA
-
Doug Dawes
Topsfield, MA
-
Bob Crane
Stevens Point, WI
-
Debe Maxwell, CRS
Charlotte, NC
986,818
I used an adjustable-rate mortgage when I knew I would be moving in 5 years or less. Went with a 7-year ARm and reduced my interest meaningfully.
-
Carol Williams
Wenatchee, WA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Peter Testa
Danbury, CT
-
Michael Jacobs
Pasadena, CA
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
5,397,606
Many different factors to consider. I suggest you have an indepth discussion with a lender. As a Realtor I don't provide advice on financing except in very broad terms.
-
Carol Williams
Wenatchee, WA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Peter Testa
Danbury, CT
-
Michael Jacobs
Pasadena, CA
-
Mary Yonkers
Erie, PA
-
Doug Dawes
Topsfield, MA
2,132,932
An excellent question to discuss with your lender.
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Mary Yonkers
Erie, PA
-
Karen Climer
Orlando, FL
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
1,231,903
Talk with your lender.
-
Abby Stiller
Cape Coral, FL
-
John Pusa
Glendale, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Peter Testa
Danbury, CT
-
Michael Jacobs
Pasadena, CA
5,206,187
If the time frame in the home is only a few years.
-
Carol Williams
Wenatchee, WA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
225,576
The idea here is that the rates are lower the shorter term you take out. Adjustable rates are used for “short terms” thereby saving you money. Most thinking is that you should use an Adjustable rate ONLY if you are 100% positive you plan on selling your home before the rates adjust. However, it depends on the economic cycle that we are in. If interest rates are going up, you need to be prepared for your adjustment to go up. If interest rates are going down, like the last 12 years, your adjustments will also be lower than before. I had a 7 year ARM and kept it for 12 years and my rate adjustments kept going down. In years past, these ARMS were taken because the future insterest rates were headed lower. Now that we are in a low rate environment, it is better to go with a fixed rate loan for the long run.
-
Gene Mundt, IL/WI Mort...
New Lenox, IL
-
Carol Williams
Wenatchee, WA
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
4,421,426
Many great responses.
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Mary Yonkers
Erie, PA
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
660,228
Generally speaking, the longer you "fix" in the interest rate on your mortgage, the higher the interest rate (thus the higher your payment and amount of ongoing finance charges).
Of course the opposite is true for short term fixed rates (as they are typically lower).
With this simple concept in mind, if you are pursuing a short term mortgage solution (1-3 years for example), you might consider a short term fixed mortgage (i.e. ARM, 3/1, 5/1). By having a short term desire for the money, you can typically enjoy lower rates from the inception of your loan, then "ride out the storm" with fluctuating rates with a lower probability of risk.
It bears noting that certain economic markets move in different directions (Google "inverted yield curve" for details). In the end, it is always a good idea for the Borrower to speak with a fiscally literate Mortgage Loan Officer to discuss options, goals & timelines specific for that Borrower.
Thanks for the shout Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
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Bob "RealMan" Timm
Minot, ND
-
Carol Williams
Wenatchee, WA
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Thomas J. Nelson, REAL...
La Jolla, CA
1,643,933
The answer varies with each person considering it; you simply can't give a generic answer to this since each borrower is different, outside of it often being a lower monthly payment opportunity. I'd ask Jason E. Gordon
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Bob "RealMan" Timm
Minot, ND
-
Carol Williams
Wenatchee, WA
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Thomas J. Nelson, REAL...
La Jolla, CA
3,417,759
ONLY if you are staying in a home less than 5 years. and that the rate wont adjust for said 5 years. Otherwise, with rate sthis low, lock them in for 30 years
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Carol Williams
Wenatchee, WA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
1,317,763
Run the numbers compare the long term costs and make a decision based upon facts not emotions.
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Peter Mohylsky,
Inlet Beach, FL
5,185,234
When one knows absolutely, positively, 100% sure you are only going to live in a house for a short period of time then an ARM may be the way to go.
-
Carol Williams
Wenatchee, WA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
5,293,460
Not now with low interest rates.
-
Abby Stiller
Cape Coral, FL
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
3,448,981
I wish you all the best with your real estate studies.
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Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Peter Testa
Danbury, CT
3,307,322
When it best suits the circumstance. A lender can help with that!
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Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Peter Testa
Danbury, CT
1,269,775
Not licensed in loan. Not allow to ans that question.
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Doug Dawes
Topsfield, MA
8,246,323
When an ARM best meets the needs of the borrower.
Those who plan to move in a couple of years may be good prospects.
-
Michael Jacobs
Pasadena, CA
-
Abby Stiller
Cape Coral, FL
-
Bob "RealMan" Timm
Minot, ND
469,625
Most commonly when you know that you're only going to be in the place 2 or 3 years.
-
Bob "RealMan" Timm
Minot, ND
-
John Pusa
Glendale, CA
-
Michael Jacobs
Pasadena, CA
5,774,106
I agree once again with Michael Jacobs
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Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
1,547,124
first you have to ask with a name. Then ask a lender. Reported.
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Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Dan & Laurie Pittsenba...
Bellingham, WA
834,301
You already got great answers from lenders
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Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
2,366,126
Like Mel Ahrens, MBA, Kelly Right Real Estate , I took advantage of an adjustable rate mortgage for a short term refi. Saved us a lot of money on interest expense.
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Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
1,482,651
Adjustable rate mortgages were very good deals when rates were plummeting. In a rising rate market the opposite would be true.
Someone who is only planning to own the property for a short time may think an adjustable rate mortgage is a good option. Of course, selling within a short time, with the attached costs, may not be in an owner's best interest.
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Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
183,015
Fix rate is not always good option for all the clients. Paying higher rate and staying in property for shorter period of time will effect on equity position.
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
1,097,855
In the current marketplace, rarely. In a market where the rate spread between fixed and adjustable rates is greater, then shorter term loans can offer borrowers a substantial savings.
Also in cases where the borrower knows they'll have a windfall and will be able to pay their loan down or off in a short period of time.
And sometimes when someone makes enough income to have an ARM come with close to 0 risk. They can afford the payments, saving interest during the intial fixed period, and if rates end up going up and they can't/don't refinance, rate increases won't negatively impact them.
In the current market though, fixed rates are better options for 90%+ of borrowers
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
5,585,039
a good discussion to have with the lender....
usually, when rates are high and you're not staying long term...
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
425,353
Most often never; but, if buyer is positive for certain they only need half the time of the fixed time period, maybe.
-
Bob "RealMan" Timm
Minot, ND
6,058,643
661,514
2,071,336
1,598,552