Excellent question! The economy is heating up. Federal Reserve watchers are predicting possible rate increases – plural! – in the months to come.
And adjustable rate mortgages are still so attractive – adjustable rates are so low! But no one wants to make a mistake on something as significant as a mortgage.
So … is there any good reason for someone buying a house today to go with an adjustable rate mortgage instead of just locking in a still-historically-low fixed rate?
At Canton Co-operative Bank, we believe there are several very good reasons why a borrower might go with an adjustable rate mortgage … even with rates rising. And this is absolutely one of those situations where you really want to be working with a local *good advice* lender like Canton Co-operative. We are dedicated to doing the math and taking the time to help you consider all of your options.
For example, if you plan to be in a home for only a few years, then an adjustable rate mortgage can easily be the right way to go. This applies to people who are expecting to make a corporate transfer, to military personnel, young homeowners who plan to trade-up from a first home and older homeowners in transition.
An adjustable rate mortgage might also let you stretch now to buy “more home.” But this only really works if it’s a fairly short-term stretch, meaning you think your income will be going up in the next few years. Also, you have to be sure that the costs of possibly switching into a fixed-rate loan later don’t outweigh the benefits of going with an adjustable rate mortgage now.
There are some ridiculously-complicated “exotic” adjustables out there. At Canton Co-operative, our adjustable rate mortgages are “plain vanilla.” Our caps are reasonable and our terms are very straightforward and easy-to-understand. Wondering if an adjustable rate mortgage might work well for you? Come see us or call/email Stan Taylor at 781-828-8811 x4 or Bela Vasconcelos x37.
Canton Co-operative Bank is located in downtown Canton at 671 Washington Street, Canton, MA 02021.
The main phone number is 781-828-8811.