some related mortgage loan calculators..
Calculate whether a fixed rate mortgage vs. an adjustable rate mortgage will benefit you in the short and long-term.
Adjustable rate mortgages typically have an initial fixed rate lower than that of a comparable fixed rate mortgage. The initial fixed rate period is followed by adjustment intervals.
How long do you expect to stay in your next home?
Consider possible relocation for a job and lifestyle changes, such as a growing family, downsizing of home and so forth.
Say, you need this loan for 3 years,
Is it likely that you'll be refinancing or otherwise paying off this mortgage within 3 years? and you anticipate it would be 2 years for you to refinance this or pay off ,
Recommendation: A 3/1 adjustable-rate mortgage seems right for you.
Here's why:
(1) You've told us that you plan to remain in your home for 3 years.
(2) A 3/1 adjustable-rate mortgage remains at a fixed rate for the first 3 years, then adjusts every year after that.
(3) Since you'll have the mortgage for only the fixed period, you'll get the benefit of the ARM's lower rate without the downside of the possible rate increase.
Note: There are several factors that are generally appropriate to consider when deciding between a fixed-rate or adjustable-rate mortgage. For example, considering how much monthly payment you can afford, whether a result of a tight budget or an expensive home, is a warning flag that you might be looking at the wrong house, not the wrong loan. Except in an environment of excessively high interest rates, the adjustable nature of an ARM represents an increasing, yet unknown, liability in future years. Other factors, such as the amount of the down payment or tax implications, are also generally irrelevant to the discussion of fixed versus ARM. The key factor for the majority of borrowers when deciding between a fixed and adjustable rate mortgage is the period of time you expect to stay in the home and have the loan outstanding.
Calculate whether a fixed rate mortgage vs. an adjustable rate mortgage will benefit you in the short and long-term.
Adjustable rate mortgages typically have an initial fixed rate lower than that of a comparable fixed rate mortgage. The initial fixed rate period is followed by adjustment intervals.
How long do you expect to stay in your next home?
Consider possible relocation for a job and lifestyle changes, such as a growing family, downsizing of home and so forth.
Say, you need this loan for 3 years,
Is it likely that you'll be refinancing or otherwise paying off this mortgage within 3 years? and you anticipate it would be 2 years for you to refinance this or pay off ,
Recommendation: A 3/1 adjustable-rate mortgage seems right for you.
Here's why:
(1) You've told us that you plan to remain in your home for 3 years.
(2) A 3/1 adjustable-rate mortgage remains at a fixed rate for the first 3 years, then adjusts every year after that.
(3) Since you'll have the mortgage for only the fixed period, you'll get the benefit of the ARM's lower rate without the downside of the possible rate increase.
Note: There are several factors that are generally appropriate to consider when deciding between a fixed-rate or adjustable-rate mortgage. For example, considering how much monthly payment you can afford, whether a result of a tight budget or an expensive home, is a warning flag that you might be looking at the wrong house, not the wrong loan. Except in an environment of excessively high interest rates, the adjustable nature of an ARM represents an increasing, yet unknown, liability in future years. Other factors, such as the amount of the down payment or tax implications, are also generally irrelevant to the discussion of fixed versus ARM. The key factor for the majority of borrowers when deciding between a fixed and adjustable rate mortgage is the period of time you expect to stay in the home and have the loan outstanding.
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