Adjustable or fixed rate?

The answer depends on how long you plan on living in the home that you purchase. If you plan on being there long term(7+ years), I would definately advise you to use a fixed rate option. Interest Rates are the lowest in history and you can lock that in for 30 Years. Thats fantastic. If you plan on living in the home for a short period of time, it may be beneficial to use the Adjustable option because it will offer an even lower interest rate for the first 3,5 or 7 years. I am the Senior Loan Officer with Omega Financial Services, we are a Direct Lender based here in Union, NJ. Call me at 908-933-0253 ext 319 ask for Peter. Or you can email me at Pbotros@omegaloans.net

In general, Adjustable rates will be about .5% lower than a fixed rate, which in turn gives you a lower payment.. Adjustable rates are good if you use them for which they were intended... if you plan on living at your place for 5 years then do a 3 to 5 year ARM... if you feel you will be there for 8 to 15 years or longer.. Then a fixed rate would be best.. personally, because rates are so low, and the rate difference is .5% in interest rate, I would just do a fixed rate and that way if life throws you changes, you'll be ok... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Choosing a Loan Product In today's environment, you may want to avoid adjustable-rate mortgages, or ARMs it will cost more to get an 5/1ARM at 2.5% then to get a 3.25% 30 year mortgage. If the seller can pay a point you get even lower rate. Good Luck and for the best service and rates Toll Free: 888-354-3299 or ballen@accessnational.com..There are consumers who take out one-year ARMs and refinance them every year, always dodging the rate adjustment. They go for no-point loans to keep their refinancing costs down. This strategy works out well when rates decline, but when rates will go up, these one-year ARM borrowers will have to pay the toll.One question to ask yourself is whether you can afford the monthly payment on a 15-year fixed-rate mortgage. The monthly payment on a 15-year mortgage is higher than that on most other mortgages, because it is designed to be paid off in 15 years rather than 30 years. However, if rates have fallen enough or your income has risen enough since you took out your current mortgage, the 15-year product may now be affordable for you. You can use our payment calculator to check.If you cannot afford the monthly payment on a 15-year mortgage, then you need to consider different products. The 5-year balloon, 7-year balloon, and 10-1 ARM products all have merit. The more likely it is that you will be moving in less than 10 years, the more you should lean toward the 5-year or 7-year balloon.

Hello. I am a mortgage broker here in NJ so feel free to call me if you would like to discuss further. Rates are so low right now, so unless you only plan on owning the house for 3-5 years I would go with a fixed rate. The adjustable rate will be a little lower but it will only be fixed for a few years depending on which arm loan you get and then it will start to adjust and at that time when you refinance to get a fixed rate the rates could be a lot higher. I would love to discuss this with you further to see what your goals and what is the best option for you. 201-962-3555 Michelle

GO FIXED, I'M 99% SURE RATES WON'T BE THIS LOW IN 5 YEARS, AND YOU MIGHT WANT TO STAY THERE.Matt ElstonNMLS Id # 69609Mortgage Loan Originator, AgSouth Mortgages office 803-324-1131, option 1 Shortel 2306 cell 803-493-1392 fax 803-328-9272 melston@agsouthfc.comfor US Mail delivers only to: P.O. Box 10941, Rock Hill, SC 29731-0941 our Physical Location / UPS / FEDEX / is: 1321 Springdale Rd, Rock Hill, SC 29730America's Lender of Choice for Ag, Land, and Rural Homes!Apply online at: www.agsouthmortgages.com

Congradualtions on your first home. You probably need a lot more advice than just a decision about fixed and adjustable rates. If you would like an informal explanation of the entire process and some suggestions on how to get the best mortgage for you, feel free to give me a call at 888-407-1592. I have been working in the mortgage industry since 1995 and remain friends with most of my past clients. Adjustable rate mortgages are good choices for people who do not plan on staying in the home long term. You can get an adjustable rate that does not adjust for the first year, the first three years, the first five years, the first seven years, or the first ten years. Once the intital term is over, the laon will typically adjust every year and will adjust to a rate which equals an index rate (like the LIBOR or Treasuy) plus a margin (think "profit" margin, usually 2.5% - 3.0%), rounded up to the nearest .125%. ARMs are also "capped" meaning the adjustments are limited in advance. For example, on a 7/1 ARM with caps of 5/2/5, after the first seven years your loan will not be able to increase by more than 5% (first adjustment cap), and will not be able to increase more than 2% (annual cap) each year thereafter. Additionally, your loan will never be allowed to increase more than 5% from the start rate (lifetime cap).I strongly encourage you to go with the fixed rate option in almost every circumstance. It provides stability and is the loan least likely to cause you problems down the line.Call me at 888-407-1592 fto discuss this further.John Desmond