Many people prefer adjustable rate mortgages for a variety of reasons:
Adjustable mortgage rates aren’t for everyone. There’s always the risk inherent of changing interest rates – your payments could go up, even if interest rates don’t. Comparing risks and benefits of adjustable mortgage rates with a professional consultation from a reputable lender like Get A Rate is key.
An adjustable mortgage rate is different from a fixed rate mortgage because adjustable interest rates change from time to time while the fixed rates are locked for the duration of your loan (unless, you – the borrower – chooses to refinance). These mortgage rate fluctuations are typically tied to an index.
A professional NY mortgage and NJ mortgage company – like the folks here at Get A Rate – can help you navigate different payment options, indexes, and margins so you can compare a variety of ARMs or an ARM with a fixed rate mortgage and how each would affect your monthly payment. An adjustable mortgage rate offers lower New York mortgage rates and New Jersey mortgage rates along with flexible payment options in return for the risk that payments may increase in the future, so keep in mind that you can never completely know the whole picture when comparing the two.
An index is a measure of interest rates, to which the lender adds a margin based on the terms of the loan (the margin is pretty much constant throughout the duration of the loan). The changes to monthly payment are limited by the “cap,” which controls the risk of wide fluctuations in interest rates.
Talk to a Get A Rate local home loan specialist to find out whether an ARM is right for you. Get A Rate has a long and impressive track record of exceptional service (check out awesome reviews from our satisfied customers!), and our seasoned mortgage experts will provide you with fast, easy, and convenient solutions for your New York or New Jersey home loan needs.
I can not even put into words how happy I am today. Gene and I closed on our beautiful home in Saddle Brook today. I am completely overwhelmed with the amount of help we have received throughout this journey from Get A Rate Mortgage, our amazing friends and family members. Thank you so much for all your help and for the champagne. #agathaandgene #ourhome #together #ourlife #ourownfamily #tothenextchapter #donperignon #wefancy
- Agatha P. Saddle Brook, NJ
My husband and I had the privilege of working with Nick Marenoski and Daniel Valencia throughout our entire mortgage process. Before we found the home that was perfect for us we were in communications with Nick. He was very knowledgeable, professional, and straight forward. He answered any questions we had as first time buyers and was able to explain in depth anything we needed more explanation on.
Nick and Danny were both so helpful and communicative throughout the entire process. Our mortgage ended up being the least of our worries in our home buying experience and now we are in our house a month and loving every minute of it! The whole process gave us a peace of mind and we knew we were in great hands. We are very thankful for Nick and Danny!
- Jessica V. Wayne, NJ
Thank you so much for all of your help and expertise in helping me secure my mortgage. You made this challenging process much less stressful because of your prompt responses, knowledge, and understanding from beginning to end. It was a pleasure working with you.
- Jennifer S. Lodi, NJ