How ARM Rates Work: 3/1, 5/1, 7/1 And 10/1 Mortgages

ARM rates are becoming more attractive as home prices rise and fixed interest rates increase. Here’s how to save money with an ARM home loan.

Source: How ARM Rates Work: 3/1, 5/1, 7/1 And 10/1 Mortgages | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

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Fixed Rates Are On The Move

Michael Nelson - AFNThe mortgage world has been enjoying the benefits of low interest rates for quite some time. As rates are expected to rise in the immediate future, it is important for realtors and lenders to be knowledgeable about the products available for our customers that will still enable them to get into a home they love.

ARMS Can Open Doors

As rates climb, the adjustable rate mortgage is more important than ever. Often this product is misunderstood, so knowing exactly how ARMS work, and when they can actually benefit your client, is important. The right ARM can actually increase the buyers qualified amount. Lower rate ARMS often allow buyers to qualify for a bigger loan.  

Michael Nelson - AFNRealtors should choose lenders that are able to articulate the benefits of different products to their clients. If clients are educated about their purchasing power, they have a better chance of finding a home mortgage that helps them to achieve their goals.

 

Educating Your Buyer Increases Their Purchasing Power

Because ARMS work differently than a fixed rate loan, realtors and lenders should work together to help buyers navigate the benefits that come with an ARM’s low interest rate.  The borrower must also be educated as to what happens to the rate as the loan matures. Keep in mind that in a rising rate environment, an ARM can be a very smart move. If your buyer hits the cap and the rate continues to climb, they are in the advantage.

Let’s Talk

AFN - Michael NelsonI am providing a link to my appointment calendar. Please schedule a time to talk in further detail about the mortgage products and how to expand your market base.  I look forward to partnering with realtors ready to take on the challenge of the change in interest rates, by offering products tailored to today’s economy. 

Happy House Hunting!

Mike
mnelson@afncorp.com
720.213.6260
Facebook
Website
@michaelfnelson2
NMLS: 1314188
Licensed in:
CaliforniaColoradoFlorida

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Michael Nelson - AFN

 

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