When is an ARM or adjustable rate mortgage right for me?

When is an ARM or adjustable rate mortgage right for me?. Fast 30 Year 7/1 ARM Interest Only Mortgage Lamorinda CA

When is an ARM or adjustable rate mortgage right for me? video duration 2 Minute(s) 32 Second(s), published by Physician Home Loans on 04 11 2016 - 22:10:07.

http://fairwayphysicianhomeloans.com/ When is an ARM or adjustable rate mortgage right for you? If you think you may not be in this home for greater than 5, 7

http://www.utahphysicianhomeloans.com When is an ARM or adjustable rate mortgage right for you? If you think you may not be in this home for greater than 5, 7 When is ARM mortgage a better mortgage option than 30-year fixed? An adjustable rate mortgage can be used to help build equity faster if you think you will Call Russell at 925-317-1500
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When is an ARM or adjustable rate mortgage right for you?

If you think you may not be in this home for greater than 5, 7 or 10 years, then it's probably a decent idea to at least consider and compare an adjustable rate mortgage as compared to a fixed.

Many of the physicians that we service are moving directly through transitional points in their lives, especially you, as a new resident or a transferring resident. you probably have on outlook where you are not sure how long you are going to be in this state or at this particular facility that you are working at.

And you know, or it is expected that your income is going to be rising rapidly. So, there's a lot of change happening from residency into practice and how that unfolds, nobody really knows. I think specifically for resident physicians wanting a doctor loan, it's definitely worth looking at.

Some things you should know about adjustable rate mortgages:
They're typically going to have a fixed rate initial term, and that's what you're going to call a 3 year ARM, a 5 year ARM, a 7 year ARM, a 10 year ARM. That refers to the number of years that the loan is fixed.

All of these loans are 30 years in term, so they're all a 30 year loan, but the interest rate is just fixed for that initial term. Then at the conclusion, let's say it's a 5 year ARM, you'll have 25 years left on the loan, but the interest rate can go variable. It can go up or down.

So the questions you should be asking yourself are:
What are the chances that I'll be in this home in 5 years?
Will I have relocated?
Will our family have grown to a size that it's no longer functional for us?
Will our income be such that we're ready to move on?
What could happen if we're still in this home, what does that look like payment wise?

A lot of these adjustable rate mortgages are going to have caps on them. Like the FHA loan has a 1% per year cap. It can only go up 1% per year. And many of the other products will have 1% or 2% per year. So you can factor in what that payment looks like and you can go what if we run over from 5 to 7 years, what's the worst case scenario those payments can go up in those years.

And then you can factor in how much savings you had in the first 5 years and you can from that point come to a logical conclusion as to what you should go with.

Any other questions or specifics on ARM, adjustable rate mortgages we'd be happy to answer them for you, we'd invite you to reach out and contact us directly.

Offering physician home loans (and loans for non-physicians, too!) in AL, AR, AZ, CA, CO, CT, FL, GA, ID, IL, IN, IA, KS, KY, LA, MI, MN, MO, MS, MT, ND, NE, NM, NV, OH, OK, OR, SC, SD, TN, TX, UT, WA, WI, WY

Josh Mettle
801-699-4287
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CA-DOC #219996
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Fairway Independent Mortgage Corporation
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1-800-201-7544

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