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Rainmaker
277,413
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

That's a great question for a licensed mortgage broker.

Oct 07, 2017 01:48 PM
Rainmaker
2,692,588
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

It depends.  

On the borrower.

On the advice of a mortgage professional or qualified financial adviser. 

Typically more information will be needed and as a real estate professional, I make recommendations of those who specialize in these areas.   

Oct 07, 2017 02:00 PM
Rainmaker
3,818,251
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

if the buyer knows the home will be sold before the rate adjusts.... and/or if rates are very high, an adjustable rate is the way to go.... rates go up and down and when they decline again, refinance to a fixed...

Oct 07, 2017 02:33 PM
Rainmaker
3,097,590
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

A great question for a mortgage professional or qualified financial adviser. It does depend on so many variables..always best to go directly to the the source for the best answer.

Oct 07, 2017 02:35 PM
Ambassador
2,096,110
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I agree with @Barbara Todaro

Oct 07, 2017 08:49 PM
Rainmaker
261,674
Melissa Jackson
United Country Real Estate FW - Fort Worth, TX
REALTOR® Matching Buyers & Sellers

When this will benefit the clients situation. 

Oct 07, 2017 08:49 PM
Ambassador
2,966,697
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

When you are looking to sell soon.  Examine your situation and do the math, the lenders have.

Oct 07, 2017 03:47 PM
Rainmaker
4,115,972
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Use the program that best meets the needs of the borrowers.

Oct 07, 2017 02:20 PM
Rainmaker
1,108,599
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Work with lender you trust. 

Oct 08, 2017 03:09 AM
Rainmaker
1,973,754
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

When it's financially feasible to do so.

Oct 07, 2017 10:20 PM
Ambassador
3,218,572
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

There is not enough spread in the rates to make it wise today. In high interest markets it may be worth the risks to get a below market rate.

Oct 07, 2017 06:32 PM
Rainmaker
607,087
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

When rates are low and you don't intend to keep property for a long time.

Oct 07, 2017 06:09 PM
Rainmaker
439,576
Mike & Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

when you want to hold the mortgage less than 5 years...

Eve

Oct 07, 2017 03:40 PM
Rainmaker
780,536
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

There are many good reasons and Barbara Todaro stated most of them clearly.

Oct 08, 2017 05:16 AM
Ambassador
3,510,363
Praful Thakkar
eXp Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Kyle Beers - great answer from Michael Jacobs 

Oct 07, 2017 11:50 PM
Ambassador
1,130,811
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I raely recommend adjustable rates especially now.

Oct 07, 2017 06:46 PM
Ambassador
1,781,004
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  When your income will be increasing in the next couple of years.

  When rates are going to go up.

  When you plan to own the house for a few years at the most.

Oct 07, 2017 05:24 PM
Rainmaker
1,560,304
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Rarely ever

Oct 09, 2017 05:33 AM
Rainer
14,029
David Martin
Fairfax Realty - Alexandria, VA
Making Realty Dreams a Reality

Situational for the market and the home buyer

Oct 08, 2017 02:42 PM
Rainmaker
1,143,878
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

When the buyer plans to own the property for just few years, or expects a change of income or some kind of additional money coming soon( to pay off or refi)~ two of them.

Oct 08, 2017 02:33 PM
Rainmaker
2,341,412
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

When fixed rates are high. That means run away from an adjustable now

Oct 08, 2017 12:46 PM
Rainmaker
907,447
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

The only time I like them is when they're a small second that gets paid off first.  Otherwise, I don't like them.

Oct 08, 2017 08:52 AM
Rainmaker
401,093
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

I think they could be appropriate when holding a property for a short period of time, before the rate adjusts significantly.

Oct 08, 2017 07:35 AM
Rainer
103,645
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

Barbara Todaro has the right answer.

Oct 08, 2017 06:21 AM
Rainmaker
1,254,592
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Kyle Beers It depends on the borrower's situation and they should understand what they are buying into. It insures a lower interest rate, but catches many by surprise when the rate adjusts.

Oct 08, 2017 06:21 AM
Rainmaker
2,169,089
Richard Weeks
Dallas, TX
REALTOR®, Broker

When you know absolutely, positively, 100 %, without a shadow of a doubt you will be in that house 3 years.

Oct 08, 2017 06:17 AM
Rainmaker
323,661
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

There's lots of reasons but what comes to mind 1st is when you're only planning to keep the house for the period of the mortgage where the rate is fixed- otherwise you might have to refi & depends which way rates are headed.

Oct 08, 2017 06:12 AM
Rainmaker
2,376,517
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

I wish you all the best with your real estate studies.  

Oct 08, 2017 05:44 AM
Rainmaker
2,466,877
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Anthony Acosta - ALLATLANTACONDOS.COM  nailed this one!

Oct 08, 2017 05:28 AM
Rainmaker
185,623
Dennis Swartz
Rickert Property Management - Columbus, OH
ABR, CRB, CRS, GRI, CMCA, MBA...experience counts!

when you think rates will trend lower, but not now.

Oct 08, 2017 04:18 AM
Rainmaker
3,221,586
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Short term owners that know they will be gone in 2-3 years.

Oct 07, 2017 09:13 PM
Rainmaker
3,604,354
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Depends on the person 

Oct 09, 2017 03:58 AM
Rainmaker
603,291
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

That's a personal decision, dependant upon the individual's situation and goals. For me it is wiser if the rate is substancially lower and I will sell before the rate increases. Generally that means I plan to sell within the first 3 years of ownership but terms vary.

Oct 09, 2017 01:15 AM
Rainer
2,815
Nichole Thalji
eXp Realty - Missouri City, TX
Commercial and Luxury Home Oops Specialist

As a former loan officer and now Realtor and Property Tax Consultant; the reason I would even suggest to someone an adjustable rate mortgage is if they were only planning going to stay/move in a few years. Could be due to short term work project under 3-5 years time total, a medical student, college student, ect.
Home buyer might have higher interest rate and it seems that an adjustable is what they are requesting and financially comfortable with gambling on the market for a short time until rates drop.
A couple who is close to the end of credit repair, very financially stable after a period of unemployment (oil & energy careers for instance) and finally back on solid financial grounds again could benefit from adjustable rate as credit score strengthens, then refinance with fixed rate, or sell before balloon note & increased rate occurs.
Never ever suggest an adjustable rate because home buyer is lacking income requirements of the deal. That is just bad business!

Oct 08, 2017 03:56 PM
Rainmaker
1,348,271
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

Short term expected holding period and a negative trend in rates

Oct 08, 2017 01:15 PM
Rainmaker
3,785,021
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

If one does not plan on keeping the home for long.

Oct 08, 2017 06:25 AM