A fixed rate mortgage offers a steady payment over the life of the loan. If mortgage rates drop in the future and you want to take advantage of those rates, you will need to refinance your house. If rates go up in the future, you’re protected from those rate hikes.
For many first-time home buyers, a fixed rate mortgage is a great option.
An adjustable rate mortgage can go up due to the structure of the loan, or when the index of interest rates rises. If your loan is structured with a low introductory rate, study your loan agreement to determine:
- when the rate will change
- if there’s a cap on the interest rate you’ll ultimately pay
- how low your interest rate will be allowed to drop
- how often the rate will be adjusted
- if a refinance option is available with the same mortgage company
Tight Housing Markets
If the housing market is tight and prices are high, an adjustable rate mortgage with an introductory low rate may be a good option for a first time buyer. However, it’s a very good idea to get the home refinanced before the end of the introductory offer to protect your finances from market volatility.
If you’re working to increase your credit score but need to buy your house now, you may be able to access an adjustable rate mortgage to keep your payments low while you work on your credit score and before you refinance to a fixed rate mortgage.
This takes determination and focus. It can be very tempting to spend a bit wildly on your new house. If you use an adjustable rate mortgage with a low introductory rate to reduce your expenses and improve your credit, then keep going on that credit repair goal. Don’t open new accounts, take out other loans or get new credit cards.
Are You Thinking of Buying a Home in Dubois County?
Use our site to search homes for sale in Jasper, Dubois, Spencer, Martin and Davis counties and all of our surrounding areas. Unlike the “big name” sites out there, at Sell 4 Free Welsh Realty our site is directly connected to our local MLS and is updated with new homes every hour. By signing up for New Listing alerts you can stay on top of the newest homes for sale and get price change alerts so you can stay ahead of other buyers and beat them to the hottest deals!
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Newest Homes for Sale in Dubois County
View the newest homes listed in Dubois County in the last 10 days:
1312 Mill Street Jasper, Indiana
4 Beds 2 Baths 1,963 SqFt 0.101 Acres
Listing courtesy of Felicia Drew from Carpenter Realty LLC.
308 N Washington Street Huntingburg, Indiana
4 Beds 2 Baths 3,530 SqFt 0.320 Acres
Listing courtesy of Stacey Thieman-Wright from THIEMAN REALTY.
970 2nd Avenue Jasper, Indiana
2 Beds 1 Baths 660 SqFt 0.080 Acres
Listing courtesy of Connie Thewes from HOFFMAN & MULLEN REALTY INC.