Which is better - a fixed or adjustable-rate loan?
Answers | 2
2) Same as #1.
3) How long will you be in this home?
#3 is the most important when deciding between an ARM or a fixed-rate loan.
The market has, and will, repeat itself with peaks and valleys when it comes to rates. The average homeowner refinances at least three times while owning a home in a 15-year period. Some do it to save money, other people's situations change and they need to take cash out for various reasons. Most loan officers know an ARM makes the most sense as the name of the game is payment savings and the lowest rate. Get as aggressive as you financially can towards your home with the lowest rate. That rate will NOT change anywhere from a 3 to a 10-year period (depends on the ARM you pick). And when the term is coming due, negotiate a low cost or NO cost refinance with your lender again to lock in a new rate. Trust me, most lenders love to retain their clients and if they seem like they can't help if you call, it's time to find a new loan officer who will. Servicing AZ and CA!