Talking to multiple lenders at places such as Lynx Mortgage Bank LLC is the first thing you need to do to determine whether an adjustable-rate mortgage (ARM) or a fixed-rate mortgage (FRM) is the better option for you with current mortgage rates in Nassau County, NY. You need to find out what rate you qualify for and what loan terms are best for you, using your credit score, household income, debts, down payment, and the amount of money you can afford to pay each month.
How do you decide between a fixed-rate mortgage and an adjustable-rate mortgage after you know the interest rate and term that lenders are willing to provide you?
Future Plans
When you take up a fixed-rate mortgage, you know precisely how much your monthly payment will be for the entire term of the loan before you sign your closing papers. Many people highly value this constancy.
Interest-rate risk, or the likelihood that the interest rate will vary, applies to ARMs. This mortgage’s interest rate varies after the first term to reflect current market circumstances. When an ARM’s interest rate resets after the introductory period, how do you know what it will be? A given ARM’s interest rate cap structure tells you how high your monthly payment might go.
Choosing Between the Two
Most clients choose a fixed rate. A fixed rate with current mortgage rates in Nassau County, NY will provide them security and stability in their mortgage payments if they need to stay there for a long time. Most homebuyers aren’t interested in accepting the risk of an ARM since interest rates have nowhere to go but up in today’s market.
For more information Contact Lynx Mortgage Bank LLC
143 Post Ave, Westbury, NY 11590
