 |
 |
Fixed Rate Home Loan Is Choice One.
 E-mail Friend
 Printer Friendly
LOS ANGELES -- Home loans for purchase are still running at the top of the VU
meter throughout the central U.S. And despite a surge of ARM (adjustable-rate
mortgage) home loan applicants in the past few months, overall Americans country
wide seem to favor the trusty 30-year, fixed-rate mortgage.
On a national basis, almost one third of home buyers choose an
adjustable-rate mortgage, this information coming from The Mortgage Bankers
Association.
With home loan interest rates remaining at historically low
levels, it is no wonder that traditional fixed mortgages outweigh advantages of
ARMs. Expect fixed rate loans to become more popular as time goes on provided
rates remain low and consumers become more educated as to this fact.
Some quick facts:
As of the end of April, averages for 30 year fixed mortgages were at 5.85
percent. Last Tuesday those rates were at about 5.34 percent. That's actually a
warmly welcomed decline.
Yes, the adjustable mortgage offers even lower rates right
now, but only by an average of one-half of a percentage point. Typically, the
lower rate will hold for 12 months to 10 years, depending on particular terms of
a home buyer's given ARM choice. In any case, after that gestation period the
the rate will either adjust up or down annually, depending on the market. My
guess is that upwards is the direction.
Keep in mind that ARM home loan optioning may still be a good
fit for many Americans. For instance: A younger family may expect to move into a
new home purchase just a few years after buying their first house. In this case,
an ARM could very well save them in the three-digit range every month on
mortgage payments.
News article by Stockton Marquette, Mortgage Industry Analyst.
|
 |
|
|
|
|
