This is how buyers can benefit from adjustable-rate mortgages.

According to the Mortgage Bankers Association, the demand for adjustable rate mortgages (ARMs) has reached a 14-year high. This is great news if you’re thinking about purchasing a property. I mentioned ARM as an option for buyers in my last blog update. Today I’ll share more details about this type of loan and how it can help you finance your dream home.

An ARM generally carries a set interest rate for the first three to seven years, then it resets based on the current rate at that time. There’s a set cap on how high the interest can go. Many people who opted for this type of program in our current market are getting a 1% or more discount every month over a five- or six-year period compared to the traditional loans. That’s a lot of savings!

If you’ve been delaying your plans to buy a home because of the crazy bidding wars and rising interest rates, this may be a good option for you. For any further questions about ARMs or anything real estate related, don’t hesitate to call or email me. I’ll be happy to help!