Latest From : Atlanta RE 5 by 5

---

It's A Good Time To Look At Adjustable Rate Mortgages Posted: 16 Apr 2010 07:45 AM PDT Each week, government-led Freddie Mac publishes a weekly mortgage rate survey based on data from 125 banks across the country. According to this week's results, the relative rate of a 5-year ARM is extremely low versus its 30-year fixed-rate cousin. Consider this comparison: In April 2009, the two products ran neck-and-neck with respect to rates In April 2010, the two products are split by 0.99 percent On a $200,000 home loan, that's a difference of $117 per month to a mortgage payment. Adjustable-rate mortgages aren't suitable for everyone, but they can be a terrific fit given your individual circumstance. For example, any one of the following scenarios could warrant a 5-year ARM: Buying a home with an intent to sell within 5 years Currently financed with a 30-year fixed mortgage with plans to sell within 5 years Interested in low payments and comfortable with longer-term interest rate and payment uncertainty Additionally, homeowners with existing ARMs may want to refinance into a brand-new ARM, if only to extend the initial change date on the current note. Before opting an ARM or a fixed, speak with your loan officer about how adjustable-rate mortgages work, and what longer-term risks may exist. The savings may be tempting, but there's more to consider than just the payment.

You are subscribed to email updates from Atlanta Real Estate -- Peter Bright, Mortgage Blogger To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610