2,222,281
That's a great question for a licensed mortgage broker.
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Peter Testa
Danbury, CT
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Tony and Suzanne Marri...
Scottsdale, AZ
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Marco Giancola
Miami Beach, FL
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Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
5,583,328
if the buyer knows the home will be sold before the rate adjusts.... and/or if rates are very high, an adjustable rate is the way to go.... rates go up and down and when they decline again, refinance to a fixed...
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Derek Larson
Washington, UT
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Marco Giancola
Miami Beach, FL
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Mary Yonkers
Erie, PA
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Michael Jacobs
Pasadena, CA
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Debe Maxwell, CRS
Charlotte, NC
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Kyle Beers
Spanish Fork, UT
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Dorie Dillard Austin TX
Austin, TX
4,584,571
It depends.
On the borrower.
On the advice of a mortgage professional or qualified financial adviser.
Typically more information will be needed and as a real estate professional, I make recommendations of those who specialize in these areas.
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Marco Giancola
Miami Beach, FL
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Anthony Acosta - ALLAT...
Atlanta, GA
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Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Kyle Beers
Spanish Fork, UT
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Dorie Dillard Austin TX
Austin, TX
5,035,079
A great question for a mortgage professional or qualified financial adviser. It does depend on so many variables..always best to go directly to the the source for the best answer.
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Marco Giancola
Miami Beach, FL
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Mary Yonkers
Erie, PA
-
Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Kyle Beers
Spanish Fork, UT
5,258,956
I agree with @Barbara Todaro!
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Peter Testa
Danbury, CT
-
Marco Giancola
Miami Beach, FL
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Anthony Acosta - ALLAT...
Atlanta, GA
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Mary Yonkers
Erie, PA
321,564
When this will benefit the clients situation.
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Marco Giancola
Miami Beach, FL
-
Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
6,425,924
When you are looking to sell soon. Examine your situation and do the math, the lenders have.
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Bob Crane
Stevens Point, WI
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Marco Giancola
Miami Beach, FL
-
Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
7,871,450
Use the program that best meets the needs of the borrowers.
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Marco Giancola
Miami Beach, FL
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Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
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Kyle Beers
Spanish Fork, UT
1,231,853
Work with lender you trust.
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Marco Giancola
Miami Beach, FL
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Anthony Acosta - ALLAT...
Atlanta, GA
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Debe Maxwell, CRS
Charlotte, NC
5,117,103
When it's financially feasible to do so.
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Marco Giancola
Miami Beach, FL
-
Anthony Acosta - ALLAT...
Atlanta, GA
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Mary Yonkers
Erie, PA
3,988,013
There is not enough spread in the rates to make it wise today. In high interest markets it may be worth the risks to get a below market rate.
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Marco Giancola
Miami Beach, FL
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Mary Yonkers
Erie, PA
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Debe Maxwell, CRS
Charlotte, NC
902,538
When rates are low and you don't intend to keep property for a long time.
-
Marco Giancola
Miami Beach, FL
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Mary Yonkers
Erie, PA
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Debe Maxwell, CRS
Charlotte, NC
613,494
when you want to hold the mortgage less than 5 years...
Eve
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Marco Giancola
Miami Beach, FL
-
Mary Yonkers
Erie, PA
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Debe Maxwell, CRS
Charlotte, NC
846,475
There are many good reasons and Barbara Todaro stated most of them clearly.
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Debe Maxwell, CRS
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
4,319,873
Kyle Beers - great answer from Michael Jacobs
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Marco Giancola
Miami Beach, FL
-
Mary Yonkers
Erie, PA
1,712,876
I raely recommend adjustable rates especially now.
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Mary Yonkers
Erie, PA
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Debe Maxwell, CRS
Charlotte, NC
2,684,769
When your income will be increasing in the next couple of years.
When rates are going to go up.
When you plan to own the house for a few years at the most.
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Mary Yonkers
Erie, PA
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Debe Maxwell, CRS
Charlotte, NC
2,195,824
1,045,440
Situational for the market and the home buyer
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Debe Maxwell, CRS
Charlotte, NC
1,625,253
When the buyer plans to own the property for just few years, or expects a change of income or some kind of additional money coming soon( to pay off or refi)~ two of them.
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Debe Maxwell, CRS
Charlotte, NC
3,416,038
When fixed rates are high. That means run away from an adjustable now
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Debe Maxwell, CRS
Charlotte, NC
1,507,073
The only time I like them is when they're a small second that gets paid off first. Otherwise, I don't like them.
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Debe Maxwell, CRS
Charlotte, NC
599,734
I think they could be appropriate when holding a property for a short period of time, before the rate adjusts significantly.
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Debe Maxwell, CRS
Charlotte, NC
225,526
1,466,257
Kyle Beers It depends on the borrower's situation and they should understand what they are buying into. It insures a lower interest rate, but catches many by surprise when the rate adjusts.
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Debe Maxwell, CRS
Charlotte, NC
4,907,547
When you know absolutely, positively, 100 %, without a shadow of a doubt you will be in that house 3 years.
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Debe Maxwell, CRS
Charlotte, NC
760,035
There's lots of reasons but what comes to mind 1st is when you're only planning to keep the house for the period of the mortgage where the rate is fixed- otherwise you might have to refi & depends which way rates are headed.
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Debe Maxwell, CRS
Charlotte, NC
3,350,764
I wish you all the best with your real estate studies.
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Debe Maxwell, CRS
Charlotte, NC
3,071,589
Anthony Acosta - ALLATLANTACONDOS.COM nailed this one!
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Debe Maxwell, CRS
Charlotte, NC
213,263
when you think rates will trend lower, but not now.
-
Debe Maxwell, CRS
Charlotte, NC
3,986,308
Short term owners that know they will be gone in 2-3 years.
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Mary Yonkers
Erie, PA
2,071,025
1,598,452
4,434,177
634,532
That's a personal decision, dependant upon the individual's situation and goals. For me it is wiser if the rate is substancially lower and I will sell before the rate increases. Generally that means I plan to sell within the first 3 years of ownership but terms vary.
3,565
As a former loan officer and now Realtor and Property Tax Consultant; the reason I would even suggest to someone an adjustable rate mortgage is if they were only planning going to stay/move in a few years. Could be due to short term work project under 3-5 years time total, a medical student, college student, ect.
Home buyer might have higher interest rate and it seems that an adjustable is what they are requesting and financially comfortable with gambling on the market for a short time until rates drop.
A couple who is close to the end of credit repair, very financially stable after a period of unemployment (oil & energy careers for instance) and finally back on solid financial grounds again could benefit from adjustable rate as credit score strengthens, then refinance with fixed rate, or sell before balloon note & increased rate occurs.
Never ever suggest an adjustable rate because home buyer is lacking income requirements of the deal. That is just bad business!
1,728,867
4,800,132