If there was a beauty contest where the months were the contestants, I’ve got to believe October would be trying on that tiara. That is at least as it is around Lake Keowee. The colors are bursting all around us and the days are high 60s to low 70s with crystal clear skies. This is our favorite time of year to shoot videos and pictures. Everything pops!
The bad news is we only have a couple of new listings to take pictures of. Everything is lining up except you fence sitters. Now is a great time to put your Lake Keowee home or lot on the market as there are still plenty of buyers in the market. We can help you by letting you know the current value of your home. I know you didn’t get to Lake Keowee nearly enough to support the investment you’ve made. We can help and we can do it right now!
Choosing the right mortgage will affect your very financial future. Here’s vital information to help you weigh your options and make a sound decision.
An Insider’s Guide to Understanding Mortgage Loans
Which loan is right for you?
Adjustable. Fixed. Balloon. It’s easy to get lost in mortgage verbiage. Here’s a rundown of the most common loans.
Libor and T-Bill indexes, for example, react more immediately to changes in the economy – a good thing when interest rates go down, not so good when they rise. Whatever happens, you’ll see it pretty quickly in your monthly payment.
More conservative buyers prefer indexes linked to the prime rate or the COFI because they’re more stable and move up (and down) more slowly than other indexes. That’s good when rates are low and rising, less so when they’re high and dropping.
Is an ARM a good choice for you? Well, if you need a lower monthly payment to afford the home you want and you’re planning to stay there less than three to five years, then yes. But make sure you can handle the higher payments that might come down the road. A prudent approach is to always plan financially for the “worst case” scenario: Assume that your loan will always rise the maximum amount. If you wouldn’t be able to afford it, then consider another loan. You know your own personal “comfort level.” Use it to make your decision.
Let’s say you’re buying your first home. You have a modest income today but a bright future. Even so, you need to keep your payment low. A long-term ARM makes sense even though your interest rate could rise over time. If you move in the next two or three years, you won’t be around for any significant rate hikes. If you choose to stay longer, a rise in income will help you keep pace. Or you can always refinance to a fixed-rate mortgage.
more next week….
More next time…
Check out the Lake Keowee Real Estate numbers for the year