Mortgages
Adjustable-Rate Mortgages May Be the Right Fit for Cautious Buyers
RISMEDIA, March 11, 2011—(MCT)—Loc Chau was looking for a super-low interest rate to finance his San Jose, Calif., condominium, a place he envisions living in for a few years. Super-low to him means below 4%. So he opted for an adjustable-rate mortgage insured by the Federal Housing Administration as an alternative to a 30-year-fixed rate mortgage. In November, 30-year fixed-rate mortgages hit a 40-year record low, averaging 4.17%. But now, they are back in the 5% range. “I don’t plan to stay here forever. History tells me I’ve averaged five years in each place I’ve purchased, and I don’t see any benefit to lock in a rate that is higher. I didn’t want to go with 30 years,” Chau said. Read More...
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