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TIPS FOR CHOOSING THE RIGHT KIND OF MORTGAGE Home buying can be stressful or uncertain at times. In today's market, there's much debate about what type of mortgage to get - an adjustable-rate or a fixed mortgage. And when is it time to consider refinancing an adjustable-rate mortgage? Here are some points to ponder: • If you are buying a home now, consider whether you'll be able to handle rate increases before choosing an adjustable-rate mortgage. Don't let the decision be simply, "What is the cheaper payment to get me into the house." This may not be the best choice for the future. Depending on your situation, you could also consider a five-year ARM if you know you'll move before it starts adjusting, or if your projected income will increase. On the other hand, for stability, select a fixed-rate mortgage to provide a steady principal and interest part of your mortgage payment. • Take time to compare the two options. Recheck your monthly savings by choosing the adjustablerate mortgage over the fixed. Is it worth the risk, should the rate adjust in the near future? Or is it worth the cost of refinancing later? What if you already have an adjustable-rate mortgage? • Review your documents and determine what the initial fixed period is. For example, a 5/1 ARM is fixed for the first five years and then adjusts every year after that. So, if you plan on remaining in your home once the loan starts to adjust, you should determine whether you'll be able to afford the new monthly payment. Get in touch with your mortgage consultant before you reach the adjustment time, so you can start tracking rates and reviewing your options. For Home Warranty Information by First American contact me today Call me today for all of Real Estate needs: Military Relocation, Buying or Selling Residential Properties www.meadehomesforsale.com dmeade@topproducercom 803-319-2703