When your strategy is owning a home for seven years or less, then an Adjustable Rate Mortgage (ARM) could be a good alternative. The majority of the home buying public is purchasing a home for the purpose of occupying it for many years. In fact, the average ownership term is eight or more.
Investors and other buyers are finding that an ARM is best because lenders don’t have to tie up their money for as long, therefore the interest rates are lower with an ARM. This can end up costing the borrower hundreds of dollars less per month. In addition, an ARM could help you with qualifying for a bigger home. On the other hand, if you’re planning on keeping your home for more than a seven-year period, an ARM isn’t a viable Home Financing In Orange County option since your interest rate could go up significantly at the end of the period set for the fixed rate.