RICHMOND, Va. (WWBT) - Rachel DePompa has a look at what you need to know about a certain type of mortgage with this On Your Side Savings guide.
You buy a car-- you owe the same amount each month... that’s not always the case when you buy a home. Especially if you go with an Adjustable Rate Mortgage.
That’s a home loan with an interest rate that can change periodically-- depending on the market. Which ultimately means for you-- that monthly payment can go up or down.
Cherry Dale with the Virginia Credit Union says doing your research on this type of loan will help! She says one advantage of it is your initial mortgage payment will be lower in the first year-- depending on when you lock in the rate.
"Say you’re just starting off and you feel like in a few years your salary will be better, or if you don’t plan on being in the house for more than 5 years, an Adjustable-Rate Mortgage might be great,” Dale said.
Cherry also says if you’re considering an Adjustable Rate Mortgage-- you have three options: Hybrid, Interest-Only and Payment options
She says your best bet is to do your research on all three, and if you are considering this-- ask a lot of questions of a mortgage lender.
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