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Financing Your Home >More On ARMs
Lenders are always looking for new ways to help buyers get into the home of their dreams. Today they frequently use adjustable rate mortgages (ARMs) to increase the buyer's options. The interest rate on an ARM changes periodically to reflect changes in the national market. Since the loan starts at a rate that is lower than the national average, lenders can reduce the borrower's qualifying criteria.
One way to distinguish between different ARMs is by the national index to which they are tied. Some ARMs are tied to a slow-moving index called the cost-of-funds index; these are usually the most desirable. ARMs that are tied to a more volatile index, such as Treasury Notes, can be adjusted upward at a quicker rate. Look at all the factors before choosing a loan. The faster index loan may start out with lower rates and lower monthly payments, but the slower index ARM may eliminate your concern about having to re-finance down the road.
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Sandra's Team RE/MAX Palm Realty 1700 Tamimai Trail Suite G Port Charlotte, FL. 33948 Cell: 941-276-6670 941-975-4484 Fax: 941-743-5518 Email: Saundraosorio@gmail.com
Sandra Osorio is a multi-lingual and multi million dollar realtor! With an extensive real estate background and excellent knowledge of the area The Sandra Osorio Team is your best choice for your real estate needs! Se Habla Espanol, Falo Portuguese, Parlo Italiano! Buy or Sell with the Sandra Osorio Team and receive a Cruise Certificate for two! Learn more at www.SandrasTeam.com!   
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