Royal Oak, MI – First time home buyers are often confused by the many different types of financing that is available. The topic of discussion at a recent seminar designed to educate new home buyers was home financing.
Mark Goedert of Goedert Real Estate was there to answer questions and offer guidance to first time home buyers. When asked about the adjustable rate mortgage, Goedert said, “Adjustable rate mortgages, also called ARMs, usually have lower introductory interest rates than fixed-rate mortgages. This makes them appealing to one who doesn’t plan to own their home very long before selling. The rate fluctuates according to certain market factors. If you plan to stay in your home for many years then a fixed-rate mortgage is likely the way to go.”
Mark discussed how the interest rate would adjust or re-set every 6 months or every year. “When the interest rate resets, it often increases to an amount greater than the rates for fixed-rate mortgages. This means you might pay a nice low rate for 6 months to one year and then you will be paying a much higher rate for the remainder of the mortgage term. This is why the adjustable rate mortgage is appealing to the person who will be selling the home within a few years.”
Mark explained how rate caps protect homebuyers from dramatic increases in the interest rate. “Most ARMs have caps that limit how much the rate may rise between adjustment periods as well as the how much it can increase or fall over the life of the loan. Even with these provisions, a fixed rate mortgage is much better for the person who will be staying in their home for more 10 years or more.”
Mark Goedert has worked with first-time home buyers in South East Michigan and the Down River area for over 50 years. He provides information and resources for new home buyers to educate themselves on home buying, financing, refinancing and tips on finding the right home. His site provides all the information as well as home search tools with demographic data and school information for people to search and learn on their own, before they begin working with a real estate agent.
Goedert Real Estate has several locations to serve a variety of clients in Adrian, Monroe, Hillsdale and the Metro Detroit area. Visit http://www.under100000realestate.com/
Contact:
Mark Goedert
1324 N. Main
Adrian, MI 49221
517-403-1603
markgoedert@
This press release was submitted by Right Now Marketing Group, LLC
