It has been over 10+ years since we did any type of adjustable-rate loan for ourselves and/or clients. Now that the federal reserve raised its rate yet once again by .75%, it may be time to explore adjustable rates.
Just to be clear . . . I am not talking about the careless variable rates we had prior to 2008 where they adjusted 1% every six months and started out with a low teaser rate. Those loans are NO LONGER LEGAL.
I am talking about a buy-down loan where you’d start a 3.99% and then increase gradually to the maximum rate of 6.50% approximately. I am talking about an interest-only loan where the first 5-7-10 years you do not pay interest on your mortgage, giving you an overall lower rate. These are adjustable loans that you know exactly what you’re payment will be when they adjust.
Since we all know what goes up must come down and what goes down must come up, eventually, you may be able to refinance out of your adjustable rate and turn it into a fixed rate. The name of the game today is being smart. Using the knowledge and information we have had from the past to create a profitable and stable future. I have been in the business for 30+ years and when I started out rates were 11%-12%. Within 3 years of being in the business, they started dropping where the normal rate ranged from 7% to 8% and they held steady in that range at least for a decade.
If you need to refinance, are looking to buy a home, and want more information as to what type of rate you can get, call me. David and I are here ready to help you.
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