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Testimonials

Hi. Sheli helped us with our short sale on our home she helped us originally purchase. She made this long, tedious process bearable. During our short sale in the middle of the process our loan was sold to a different lender. She took he reigns and tackled everything for us. Oh, by the way we moved to the east coast after our home sold in 1 week. She made it as seamless as possible. We were ready to give up a couple of times but, after speaking with her, she made us comfortable with our original decision. Sheli has become a dear friend. If I ever return to AZ and need any real estate services. She is my choice. I highly recommend her to anyone. Marisa and Jason
Sheili helped us buy our house here in Buckeye almost 5 years ago when we were out of state. She was always in contact with us through the whole sale process and even there for the signing of our papers to make sure we understood everything we signed. She even went to the design center with us to help us chose the right things for our new home to keep our payments down. She has still stayed in touch with us to see if there is anything or any question we might have. She was even able to find my brother and sister in law a home out here from Calif. and they are happy with Sheli as well and recommend her to their friends. I can't say enough to convey how we feel about Sheli, she's the best of the best. Mary Ann Duran
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Adjustable Rate Mortgages - The PROS & CONS

Now that you know what an ARM is and how it works, you may be wondering what the advantages and disadvantages are. So let’s explore that issue.

Offering adjustable rates allows lenders to transfer part of the interest rate risk from themselves to the borrower. If you get a fixed rate mortgage and the interest rate then goes up, it costs the lender money. However, if you have an adjustable rate mortgage, as the interest rate goes up, so does your payment, thus compensating the lender. Adjustable rate mortgages are particularly useful when unpredictable interest rates make fixed rate loans hard to get.

One of the main advantages of an adjustable rate mortgage is that the initial interest rate is lower than that of a fixed rate mortgage. A lower rate means lower payments, which may help you qualify for a larger loan. This is an important detail if you expect your future earnings to rise. In this case, the ARM will allow you to qualify for a larger loan amount earlier rather than later.

However, this information should only be used with care. If you use an ARM to qualify for a larger loan amount than a fixed rate would allow you and the interest rate then rises drastically or your income doesn’t rise, you may not be able to afford the larger monthly payments, thus causing you to default on your loan.

A situation in which an adjustable rate mortgage makes sense would be if you are only going to keep the house for a short period of time. If you are only planning to own your house for only a few years, the risk of the interest rate rising goes down. This means that you will get a better rate with an ARM, making it a good choice. However, if you plan on staying in your home for a long period of time, a fixed rate may be a better option.

The lesson here is to have a plan. Know what your goals are in purchasing a home and plan for all eventualities. Do your research when shopping for an ARM and consider the worst-case scenario.

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