Marry the House, Date the Rate

While spring is the most popular time to purchase a home, many people begin to look for homes and assess their options in the winter. According to Rocket Mortgage, winter can be the cheapest time to buy a home because there’s less competition. You might find a great deal from a motivated seller.

This leaves the question of how you’ll purchase the home. Homebuyers are faced with many mortgage options. Depending on your situation, a fixed-rate mortgage or an adjustable-rate mortgage (ARM) may be ideal. Betty Anders, Assistant Vice President of Mortgage Origination, has some tips to consider when deciding what works best for you and your family.

What is the difference?

This leaves the question of how you’ll purchase the home. Homebuyers are faced with many mortgage options. Depending on your situation, a fixed-rate mortgage or an adjustable-rate mortgage (ARM) may be ideal. Betty Anders, Assistant Vice President of Mortgage Origination, has some tips to consider when deciding what works best for you and your family.

How long will you be in the house?

If you are purchasing your family home that you plan to stay in for a long time, it might be a better idea to go with a fixed-rate mortgage. It can provide security and peace of mind locking in your rate regardless of how the market performs. However, if you are a first-time homebuyer or plan to stay in the house for ten years or less, ARM’s offer lower interest rates overall and may be ideal. This is important to consider before deciding between the options, so you can go the route with more affordable payments.

What's next?

It’s more important to love your home than worry about your mortgage rate. Do not let the interest rate right now determine if you purchase your dream house or not. Rates can be changed through refinancing or by the market if you have an ARM, so think of your rate as temporary. Here’s an example of a couple who worked with Betty to find options that worked for their situation: They were desperate to buy a house, and the wife’s family was selling their family home that needed a lot of work. When the pair decided to purchase the family home, they wanted a fixed-rate mortgage. Betty advised the two of them to proceed with an ARM instead, which freed up funds for renovations. Since then, the couple was able to refinance and now have a fixed payment like they originally wanted. ARM’s can offer flexibility by saving money in the short term to pursue other projects.

House hunting can be hectic. Mortgage originators and Workers Way Financial Wellness Coaches are here to help you decide the best option for your family through personalized, one-on-one conversations that can get you into your perfect home.