Fixed rate or ARM? What is best for you? Tampa Mortgage Info from Waterstone Mortgage (Diaz Duo) on The Duncan Duo Show

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Andrew Duncan, Tampa Bay's #1 Realtor and Expert has the Diaz Duo from Waterstone Mortgage talk about the Fixed Rate Mortgage vs Adjustable Rate Mortgage on The Duncan Duo Real Estate Show on 970 WFLA. Which one is right for you?

The Adjustable rate mortgage has been a great stable product for certain people depending on how long they are going to stay in the property,  how much money they're putting down, and what the rates look like.

David adds that one of the reasons why this type of mortgage had a bad rap was because a lot of the sub prime mortgages were  adjustable rate mortgages with a 2 year period. A lot of people assume that all adjustable rate mortgages are like that.  In reality, a lot of them will give you several year period with a lower initial rate and then it adjusts. The downside in previous years was that the rate went up astronomically higher than the prime rates at the time. These astronomical jumps are usually when you pair an adjustable rate mortgage with an interest only mortgage so when the rate adjusts, it also pulls in the principal. That's where payments skyrocket.

David says you can get a fixed rate mortgage nowadays for 10 years so an adjustable rate mortgage is pretty safe and because you're probably be going to do something before that 10 year period is up. 

This is why it's important for you to have a game plan. Know what your plans are, how long you're going to stay in the home,  what you're going to do with it. Some lenders would talk about getting you into certain programs even before you talk to them about your plans. Andrew recommends to those who are looking to get financed to work with a lender like Waterstone Mortage and The Diaz Duo because David and Arnie will sit down with you, talk to you about your game plan, figure out what your costs are going to be, and take a look at which program is right for you. He also says how important it is to go with a local lender because a lot of times you'll have a better connection with the mortgage lender, the lender will have a better connection with the realtors involved and has more pressure to do a good job.

For more Tampa Bay Real Estate news and advice, tune in to The Duncan Duo Real Estate Show on 970 WFLA - Tampa Bay every Sundays at 10 am.

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