Home Loan Advice From STSFC

Stop calling ads Dont be pushed into a house Play the game of nines Sell Before You Buy Monday March 27 Home Loan Market March 23rd Home Loan Commentary Daily Loan Rate Advisory Know the score, Credit Scoring!

Latest Home Loan Q & A

Should I get Prequalified? When is an ARM better? Should I choose ARM or fixed rate? Do I need w-2 forms? What is a broker's responsibilities? Is my lease option a refinance?

Charlotte Home Loan Professionals

Don't let such an important opportunity pass, in 20 seconds you can end your rent or high interest mortgage and get you home this month

STSFC is a local mortgage consultant and brokerage firm serving the Carolinas with professionalism and communication. We are able to work with clients from all situations and explain the best road to a home loan. We have helped hundreds of people acquire their pre-approval and walk away from renting and into home ownership for the first time.

Our programs, connections and open professioanl communication with clients has helped us to acquire great rates and low interest loands for clients in Huntersville, Charlotte, Mooresville, Concord, Matthews, Uptown, Rockhill, Lake Norman, Columbia SC and all surrounding regions of the Western Carolina.

Something you cant find on our site?
Check out the sitemap for all current pages, see the archive or great home loan articles from STSFC here and read the past mortgage questions about your Charlotte mortgage answered by the professional brokers at STSFC in Huntersville North Carolina, the Charlotte Home loan experts, and you local partner.

Good Site? Vote at:

Should I Choose Arm Or Fixed Rate?

Should I Choose Arm Or Fixed Rate? The most common choice available when shopping for a mortgage is whether to go with an adjustable rate or a fixed rate. The choice comes down to your individual needs as a homeowner or homebuyer. ARM Mortgages typically have a lower rate which translates to a lower payment than do fixed rate loans. The rates are lower because lenders know that your intent is to NOT have this loan for a full term of a loan (usually 30-yrs). That means less time that the lender is at risk, and lower risk equals lower rate. Someone with a fixed rate may very well (however highly unlikely) keep that loan for up to 30-yrs, and the lender is at risk of not being paid for that entire time.

The interest rate market is actually in a very unique stage right now. Because the world economy is in a bit of a slump, fixed rates are relatively low. At the same time, market uncertainty for short term investments is very high. This means that interest rates on adjustable rate mortgages higher- they are in many cases higher than a fixed rate loan of equal caliber.

Why? The uncertainty of short-term securities will cause the rate on an ARM loan to increase dramatically at the first adjustment. This dramatic increase could very well cause homeowners to get in over their heads, and possibly lead to an increase in foreclosures- these are risk factors to the lender. As stated before, higher risk equals high rate an lower risk equals lower rates. In this situation the risk of someone keeping a mortgage for 30-years is a more acceptable risk than the possibility of increased foreclosures.

What does that mean for the consumer? Unless, you know without a doubt that you will not have the same loan or house after the first adjustment, then you should go with a fixed rate. It will probably even be lower than that of an ARM.

Should I choose ARM or fixed rate?

Charlotte Home Loan And Mortgage Tips

This and many other free tips on the Charlotte mortgage process and offering are compliments of Lee Sharpe of STS Financial Corporation.

STSFC is a Charlotte Mortgage and Home Loan firm located in beautiful Huntersville, NC providing professional services to the greater Carolinas. STSFC services areas such as Huntersville, Mooresville, Davidson, Lake Norman, Charlotte, University City, Matthews, Rock Hill and Concord North Carolina.