ARM vs. Fixed-Rate Mortgage:

If you’re raring to buy a home, chances are you’ll need a mortgage. But which kind of mortgage should you get?

Home loans aren’t one size fits all, but come in a variety of forms to suit home buyers in different circumstances. One good place to start figuring out your options is a mortgage calculator, where you can plug in various home prices and and have this sum broken down into monthly payments. Still, in addition to a home’s price, you should carefully consider the type of loan you get.

Two of the main types of mortgages home buyers consider getting are a fixed-rate mortgage and an adjustable-rate mortgage, or ARM.

So what’s the difference between these two types of home loans? In a nutshell, a fixed-rate mortgage has an interest rate that stays the same over the life of the loan. An ARM, by contrast, has an interest rate that changes over time.

Before you seek out mortgage pre-approval, let’s break down the pros and cons of each loan so you can decide which one is right for you.

5 Easy, Earth-Friendly Ways To Create a More Eco-Conscious Home

With renewed focus on the accelerating climate crisis, many people wonder what they can do individually to make a difference. The good news is that you can have an immediate impact by instituting small changes around the house.

1. Cancel plastic from your bathroom.

2. Swap out paper products for cloth.

3. Upcycle your recycling.

4. Reduce your laundry loads.

5. Use eco-friendly cleaning supplies.

Read more about these tips HERE.

What Is an Interest-Only Mortgage?

What is an interest-only mortgage? It’s a type of home loan where you start off paying only the interest for a certain time period, followed by a time where you pay back both the interest and principal.

Most interest-only home loans are adjustable-rate mortgages, or ARMs, says Scott Sheldon, a senior loan officer and consumer advocate in Sonoma County, CA.

An ARM, also known as a variable-rate mortgage, is a loan that starts out at a fixed, predetermined interest rate that’s likely lower than what you would get with a comparable fixed-rate mortgage. However, the rate adjusts after a specified initial period—usually three, five, seven, or 10 years—based on market indexes.

Read more HERE.

10 Steps in the Homebuying Process

If you’re thinking of buying a home and you’re not sure where to start, you’re not alone.

Here’s a guide with 10 simple steps to follow in the homebuying process.

Be sure to work with a trusted real estate professional to find out the specifics of what to do in your local area.

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