Many Buyers get very afraid when they hear "Adjustable Rate Mortgages". Buyers need to be good consumers and do their homework with a good calculator and a good Mortgage Representative. Here in Provincetown and the surrounding area, this area is mainly a second home market. Here is fact to consider: most second homeowners only keep the property for 2-5 years on average.
Most property owners end up trading the property for larger, or smaller, or for a different location. Since it is a second home, it is easier to make the trade for another property. Thus, it could make financial sense to obtain an adjustable rate mortgage with an initial rate lock for 3-5 years (these rates are typically called 3/1 or 5/1 ARM's). This could keep your payments more affordable and could allow more money to go toward principal- which would in turn give you more equity when you sell the property for another second home.
When working with Buyer Clients, I always advise a 3/1 or a 5/1 ARM. Unless, they are 100% sure they are going keep the property for more than 5 years. I don't know about you, but, I am not 100% sure I will have my second home in 5 years! Feel free to browse my website to view a variety of condos and homes here on Cape Cod.
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When looking to buy or sell your piece of Provincetown Real Estate or in the surrounding area, please call me at 508-237-4632 or e-mail me at Rick.Tourgee@Century21.com
I am an Accredited Buyer Representative (ABR) and a Seller Representative Specialist (SRS) with a successful track record servicing many Buyers and Sellers. I follow the Golden Rule and look out for my Clients needs above my own.
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