3 Reasons to Get an Adjustable Rate Mortgage Right Now | RealtyPin.com

LOS ANGELES, Feb. 7, 2013 /PRNewswire-iReach/ -- 3 Reasons to Get an Adjustable Rate Mortgage Right Now - If you do some home buying research on Realtypin.com, you'll see that an adjustable rate mortgage has been one of the most popular mortgage options in the country for years. But with mortgage rates sitting at record-low levels, more and more of today's homeowners are opting for fixed mortgages. That way, they can take advantage of these incredibly-low levels for the next 15 or 30 years.
So, is the adjustable rate mortgage dead until rates go back up? Not necessarily. Here are 3 reasons to opt for one right now:

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1.  You're planning on moving soon
Remember, adjustable rate mortgages don't adjust right away. You'll get to take advantage of a fixed term for a couple of years (the exact length of that introductory term will depend on your specific loan that you could find by visiting RealtyPin.com's mortgage center). And, as an added benefit, adjustable rate mortgages come with "teaser" periods to get you to sign on the dotted line – meaning that these periods often come with lower rates than their fixed mortgage counterparts. So, if you're only planning on staying in your house for a few years, you can move before the "teaser" period expires – and actually take advantage of lower rates than a fixed mortgage would give you!

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2.  They can be flexible AND short
With other types of mortgages, if you want the flexibility of having smaller monthly payments (and, thus, the freedom to pay more whenever you want anytime you want to give your equity a boost), you have to go with a 30-year mortgage. However, since adjustable rate mortgages come with fluctuating payments, you can wind up with that same flexibility in a 15-year mortgage. That way, you get the best of both worlds!

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3.  They come with a cap
If you're afraid that mortgage rates are going to skyrocket sometime over the next 15 or 30 years – and, thus, an adjustable rate mortgage is just too much of a gamble – don't worry. These loans come with a cap, meaning that you can't pay more than a certain interest rate for the entire life of the loan. That way, even if mortgage rates do skyrocket at some point, you won't have to pay them. Just be sure to read the fine print of your mortgage. That will tell you exactly how high your rates can go over the duration of your home loan. Considering how low they're starting right now, you might be surprised at how low that cap is!

Media Contact: James Paffrath RealtyPin.com, 1-(866) 960-8649, james@realtypin.com

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