Most buyers know that first-year interest on Adjustable Rate Mortgages (ARMs) is typically lower than the interest on available fixed-rate mortgages. This makes ARMs easier to qualify for, but also requires that borrowers have some understanding about how such loans work, because there are significant details associated with the low first-year rate.

First, check to see how long the low rates offered on the ARM are guaranteed. After that period of time, the rates can go up two points a year to a typical rate cap of six points over the life of the loan. Lenders will usually require borrowers to qualify for a mortgage loan that is several percentage points above the actual initial rate charged on the ARM. This is intended to keep borrowers from becoming overburdened by debt. Some lenders may charge special fees or caps which can increase the cost of the loan. If you think that an ARM may work for you, it is a good idea to shop around.

	See All Tips In The "Financing Your Home" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Kathy Barth
Texas Home Group Realtors
20920 Kuykendahl Rd. Ste E
Spring, Texas 77379
Office: 281-350-8000
Cell: 936-537-4450
Fax: 936-597-4552
Email: Kathy@KathyBarth.com
KathyBarth@consolidated.net

I am committed to bringing you the best results possible to fit your real estate needs. My vast array of experiences, including world travel, entrepreneurial ventures and experience as a licensed Realtor® in this industry helps you, the buyer or seller, achieve results and avoid pitfalls that can happen so easily in transactions. I can make the process a little easier for you in every way. Your first step is choosing the right Realtor and I am that Realtor. I enjoy building personal relationships which last a lifetime. I serve the Lake Conroe and Montgomery areas. TEXAS HOME GROUP,Realtors® are the best safety net you can have when purchasing or selling a property or home. I strive to get you Top dollar when selling your home, and I work hard to find the right home for the buyer. I firmly believe in advanced education due to the faster paced and more complex process of home buying and selling today. This is evident thru my designation of ABR (Accredited Buyers Representative) and CRS (Certified Residential Specialist).Nobody in the world sells more real estate than TEXAS HOME GROUP,Realtors. My core constituency is all about families and I will help you find your dream home.

www.KathySellsLakeConroe.com is brought to you by Kathy Barth
NUMBER1EXPERT™ in real estate for Lake Conroe, Bentwater, and Montgomery County, Texas, Waterfront Luxury Homes, Ranches

Read Kathy Barth's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge