 A great option for buyers from our friends at Consumers Credit Union. If you need help finding a lender or a mortgage that works for your needs Give Chris Simpson a call. I work with many different lenders who have many options to get you into a home without breaking the bank. Call Chris Simpson today 231-215-7229 _ARMs offer a cheaper option for homebuyers who don’t plan to live in one place for very long._ Prospective homebuyers face many challenges these days, including the recent inflation of home prices. One way to make your mortgage money go further is by opting for a Consumers Low-Rate 7-Year Adjusted-Rate Mortgage (ARM.) Continue reading to learn how this type of mortgage could help you save. #### **An option to consider for those who intend to move within seven years** If you don’t plan to live in one place for very long, a Low-Rate Seven-Year ARM can provide big savings compared to fixed-rate loans. This is because you could get a lower initial interest rate compared to a fixed rate home loan. Lower interest means lower monthly payments and more of your money can go toward principal to help build equity, too. So why doesn’t everyone get an ARM? While few homebuyers would object to a reduced interest rate, some are uncomfortable with the possibility that their loan’s interest rate could increase. However, the amount an ARM interest rate can vary is limited. #### **How much can rates vary?** A Low-Rate Seven-Year ARM is a 30-year loan, which allows the interest rate to be adjusted within the first seven years. It has what’s called a 5/2/5 cap. The most the loan’s interest rate could fluctuate over its lifetime is 5 percentage points; those 5 percentage points could happen in year one but if not, future adjustments are limited to a maximum of 2 percentage points per year. In other words, the rate will never be more than 5 percentage points higher or lower than your initial interest rate. Homebuyers who choose an ARM should make sure their budget can accommodate a possible increase in rates. #### **What if I decide to stay in my home after 7 years?** With this 30-year mortgage option, if you decide to stay in your home after the seven-year adjustment period, at the beginning of the eighth year the interest rate will be adjusted according to market rates and a new monthly payment will be calculated for the remainder of the loan repayment period. Chris Simpson
Nexes Realty Inc.
880 W. Broadway Ave
Muskegon, MI 49441 * * * ### Discover more from Muskegon Real Estate Agent, Chris Simpson,Homes For Sale, Muskegon Homes,Muskegon House For Sale, Muskegon Real Estate, West Michigan Real Estate Agent, Muskegon Realtor Subscribe to get the latest posts sent to your email. Type your email… Subscribe ### Share this: - [X](https://chrissimpsonwestmichiganrealestate.com/2022/06/30/beat-inflation-with-low-rate-7-year-adjusted-rate-mortgage/?share=twitter&nb=1)
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