Real Estate Tips from Bob Rich-Conserving Cash

Although most buyers would like their mortgage payments to be stable, this is less important for some -- specifically, those who plan to stay in their home for a relatively short time, say, 5 years or less. For those buyers, an adjustable rate mortgage (ARM) may be the way to go. This is especially true if the margin between and adjustable and fixed rate mortgage is at least 2 percentage points.
Generally ARMs have a one or three year starting rate. After this initial interval, the lender adjusts the rate periodically to keep it in line with prevailing mortgage interest rates. To protect buyers during periods of turbulent interest rates, most ARMs feature a cap on the extent to which the rate can increase.
Among those who may benefit from the lower starting rate of a 3-year ARM are first-time buyers. Their main goal may be to conserve cash during those first years of home ownership. Cash conservation is among the greatest benefits of and ARM.
The Rich Company provides you with the most accurate information on property purchases in eastern NC.