.

Certain Homeowners Opting for Adjustable Rate Mortgages Because They Will Sell their Homes in the Next Few Years

If you don't plan to stay in your home, an adjustable rate mortgage could save you more monthly until you sell.

 

Michelle will be selling her home in the next 5 years, as the oldest child will be out of high school in 4 years. Her plans are to move down south. We examined what the payment would be for the 30-year fixed and the adjustable, that would be fixed for 7 years. Her rate was 2.75%, not bad at all!

In 5 years she would save an additional $6,000 over 5 years. Her overall monthly savings was $366 per month. Even though her plan is to sell within 5 years, I convinced her to have the rate fixed for 7 years, just to play it safe.

I seldom ever recommend anyone get an adjustable rate mortgage, but in Michelle’s case, it was the right choice.

Report Examines Effect of Consumer Expectations on Price Recovery

By: Esther Cho

View full article

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something