Real Estate Mortgage Loans
Surprisingly, home loan rates have remained low. That's good for people purchasing a home. Many people can still secure a loan at a good rate around 6% APR on a fixed rate mortgage and lower for an ARM loan. No one knows how long that will last, but if you want to get a home or you are already paying 7% or more on an existing mortgage, submit a home finance (or refinance) application to take advantage of interest savings.
ARM loans are typically better for people moving frequently as they are likely to have lower initial interest rates. Fixed rate loans are for the person who plans on staying in their home for 5 years or more. Don't take an ARM loan simply because it's initially lower right now if you plan on staying in your new home for 5 or more years. If Interest rates go up, the ARM loan's interest rate also moves up. Choose a fixed rate loan unless you plan on moving soon.
