Getting the Right Mortgage for Now and for the Future!
A vital part of buying a Florida home is getting the right mortgage. But not all mortgages are the same. There are two general classes of mortgages; fixed rate mortgages keep the same interest rate for the full duration of the debt. The interest rates for adjustable-rate mortgages (ARMs) change every year after an initial period expires. You also choose the duration of the loan.
That’s the easy part. When it comes to choosing those details, coming up with the right option for your family can be a brain-twister (especially when you realize how big a difference different future scenarios might present). When you go about getting amortgage, you need to account consider the major factors –
- Affordability. Your budget for month-to-month payments is the largest single element to gauge when getting a mortgage in Florida. If you want to ensure lower monthly payments and minimize the risk of increases, tilt toward a longer-term fixed rate mortgage. If you can afford to risk a higher interest rate, a short-term ARM might be best.
- Future Rates. This can be a key issue when choosing between a fixed-rate mortgage and an ARM. If you suspect interest rates will decrease over time, you might tilt toward the ARM, since those mortgage payments will eventually decrease along with interest rates. If interest rates are headed up over the long haul, a fixed rate lets you to lock in today’s lower rates.
- Permanence. If you plan to live in your new home for just a short period, your choice for getting a mortgage may be less complicated. ARMs usually start out at a lower rate than do fixed-interest mortgages, and if you move before the adjustment period begins, you can take advantage of the lower initial rate and avoid the future possible payment increase.
Like all financial decisions, getting a mortgage in Florida should be carefully undertaken: always keeping in mind your long-term financial goals. I’m here to help clarify the many issues that enable my clients’ success: call me today if you are thinking about a move to Port St. Lucie, Palm City or Jacksonville this fall!
Are you tired of scouring the newspaper and MLS listing sites looking for homes in Florida? Tired of playing telephone tag with Realtors only to hear the home’s already sold? Sit back, relax and let Bold Real Estate Group and our team of professional Realtors do the work for you! Just visit our website and check off the properties and communities you’re looking for www.BoldRealEstateGroup.com is FREE and there’s no obligation! or send us an email firstname.lastname@example.org for additional information on all the real estate services we offer.
Author Millie Gil: I have been in the real estate service business in Florida for many successful years and will be here for many more. Doing real estate relocation is also a passion, by assisting transferees with every residential or commercial real estate need. I know that “Relocations occur for business reasons, but more often they succeed because of a combination of family needs that are met”. My commitment to my clients is that I work diligently and quickly to produce results.
As a full service Broker-Owner of Bold Real Estate Group in Stuart Florida. I assist buyers, sellers, renters and investors in real estate transactions spanning all of the price ranges and property types. I am fluent in English and Spanish with a strong network of real estate professionals worldwide.