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A: Why use a Connecticut Mortgage Broker?
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1. What Can You Afford >>
Quick Guide through the CT Mortgage Puzzle >>
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Keep informed. No one ever said this was an easy business to 17 be in! Timeliness is essential. Not all loan programs are the same and the guidelines for each lender's programs can change overnight. It is a challenge to do the more difficult deals but the 18 satisfaction of helping a client get his dream house will be worth the effort.
ADJUSTABLE RA TE CONNECTICUT HOME LOAN (ARMs)
Over the years, adjustable Connecticut mortgage interest rate loans have become 19 as popular as 30-year fixed loans.
One of the most attractive advantages of an ARM Connecticut home loan is that it offers a Connecticut home loan payment that has a lower Connecticut mortgage interest rate and a lower payment than the current fixed Connecticut mortgage interest rate product. This enables many first time buyers to enter the market earlier 21 than they had anticipated. Also, lower payments may help a borrower qualify for a larger mortgage, enabling him to purchase a larger home than might have been anticipated. More first time homebuyers 22 today are using ARMs with 5% down payments to enter the housing market. (Many lenders still require 10% down payments for I-year ARMs, so always check with your lender 23 on down payment requirements).
An adjustable Connecticut mortgage interest rate Connecticut home loan is good for a borrower who:
.Expects his income to increase in the near future. 24
Wants to qualify for a larger Connecticut home loan amount.
Needs a lower initial Connecticut mortgage interest rate to qualify for a mortgage. 25
Is looking at short-term ownership of the property.
Doesn't mind fluctuating Connecticut home loan payments.
Doesn't need the security of a fixed Connecticut mortgage interest rate loan.
Generally, if the spread between fixed rates 27 and a 1-year ARM is less than 3%, most borrowers will go for the fixed rate. If the spread is larger than 3%, more borrowers will consider adjustable Connecticut mortgage interest rate loans. 30
There are different ways an ARM Connecticut home loan can be structured. Some examples are:
1-year ARM adjusts every year. 31
3/1 ARM has a fixed Connecticut mortgage interest rate for 3 years and then will change to a 1-year ARM for the remainder the Connecticut home loan is on the property.
5/1 ARM has a fixed Connecticut mortgage interest rate for 5 years and then will adjust every year thereafter.
1-month ARM adjusts every month for the life of the loan. 33
Most lenders offer ARMs with "teaser rates." ARMs with teaser rates have beginning interest rates lower than the current market rate. 34 For example, a borrower may be quoted a teaser Connecticut mortgage interest rate that is 4 percent below the current 30-year fixed rate.
When someone selects an ARM with 35 a teaser rate, the lender must provide the APR (annual percentage rate). The APR is arrived at by taking not only the initial teaser Connecticut mortgage interest rate but by projecting future Connecticut mortgage interest rate adjustments over 36 the full
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