If you are buying Santa Clarita real estate there is a good chance you need to acquire a mortgage. There are a lot of mortgage terms floating around out there that indicate length of loans, types of loans, and more. One such term is ARM, otherwise known as an adjustable rate mortgage. An ARM is exactly what it sounds like, a loan that adjusts over a specified period of time. With an ARM loan the interest rate can change and so the payment amount of your loan can change over the lifetime of the loan. The benefit of an ARM is that it allows you to buy a home in the Santa Clarita Valley with low payments to start, ideal if you are not planning to live in the home you are buying for very long.
The disadvantage of an ARM is that payments can rise dramatically, going from payments that are doable for your budget, to payments that are completely unmanageable. Some ARM loans are possible to acquire with a cap, so that you know off the bat what the worse case scenario as far as your payments go.
Contact us today to learn more about different types of homes loans. As experienced Santa Clarita Realtors we have a lot of knowledge of the mortgage industry and have many lenders that we can recommend.
Contact us at Remax Santa Clarita today to learn more about Santa Clarita real estate, as well as to have free access to the Santa Clarita MLS and all Santa Clarita properties that are currently listed for sale.