Virginia Mortgage Lenders and Adjustable Mortgage Rates
While most loan seekers in Virginia seek fixed mortgage loans, Virginia mortgage
lenders often push for adjustable mortgage rates, which is also known as
variable rate mortgage.
This is because ARMs...
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Virginia Mortgage Lenders and Adjustable Mortgage Rates
While most loan seekers in Virginia seek fixed mortgage loans, Virginia mortgage
lenders often push for adjustable mortgage rates, which is also known as
variable rate mortgage.
This is because ARMs give them a chance to earn more
on the investment they make.
What is an ARM?
Unlike a fixed mortgage rate, an ARM comes with rates that keep changing with
the changing market trends.
This means, the net amount you end up paying after
the completion of the loan term can be on the higher side.
The rise or fall in
market rates directly impacts your monthly payments.
Should you opt for ARMs?
ARMs entail lot of risks.
While on the one hand you may have to pay less if the
interest rate falls, on the other, you may have to shell out more if rates shoot up.
If you can afford to withstand the flip side of ARMs you can opt for it.
However, it
is better to go for ARMs only if you have a good understanding of the market
economics.
How high
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