ARMs
Here is a tip for those who are shopping for Adjustable Rate Mortgages (ARMs): the "margin" is almost as important as the initial rate. The margin is the percentage point above the average yields for Treasury notes on which future rate adjustments will be calculated.
Let's compare two hypothetical one-year ARMs. The first may have an initial interest rate of 7% with a 2.5 margin, while the second begins at 6 7/8% with a 2.75 margin. Both loans have rate caps of 2%. Suppose that at the end of the first year of the loan, the average of the one-year Treasury note yield has been 5 1/2%. For each loan, the lenders will add the margin to that 5 1/2% average yield. Thus the interest rate for first loan would increase from 7% to 8%, and the second would go from 6 7/8% to 8 1/4%. While the first ARM had a slightly higher initial rate, it will have lower rates in subsequent years, unless the Treasury note rates increase enough to activate the annual caps on the amount of the increase. There is a wide variance among margins in ARMs offered by competing lenders, and this should be a factor when you decide on your loan.
Do These Real Estate Tips Really Apply to YOU? I've learned these tips through years of experience as a top real estate agent. But I know that YOUR situation might be different. That's why I'm here. It's my job to personally advise homebuyers and sellers. Ask me if any tip that I've included here really applies to your situation. Do any of these tips raise questions for you? Didn't find what you're looking for? Let me know! I am happy to answer ANY questions. It's my job! There's no obligation, and I promise to get back to you quickly...
| Q |
What land did the U.S. Government buy for $7.2 million?
|
| A |
The U.S. bought all of Russian America (Alaska) from the Russian Czar in March 1867. |
 See More Real Estate Trivia > |
|
|
|
DeLena Ciamacco
RE/MAX Connections, Realtors
4531 E. Walnut Street
Westerville, OH. 43081
Toll Free : (877) 693-SOLD (7653)
Office: 614-342-TEAM (8326)
Fax: 614-882-6752
Email: delena@delena.com
DeLena began to sell Real Estate with a local Conventional Brokerage and soon decided that in order to grow she would need to affiliate herself with a much larger, International Company. She chose RE/MAX and that is when her career as a Realtor began to soar. After just her second year with RE/MAX (1993) DeLena ranked #5 in all of Ohio among RE/MAX Realtors. In addition to her numerous local recognizable awards with the Columbus Board and Ohio Association of Realtors, she was inducted into the RE/MAX International "Hall of Fame" and "Lifetime Achievement" (RE/MAX's highest achievement awards) as the youngest Realtor in RE/MAX History to attain this level of sales. She has been the recipient of RE/MAX's highest awards since her first full year with RE/MAX. She has been recognized in "Who's Who" in Residential Real Estate in North America for 1994, 1995, & 1996, and articles have been written about her in Ohio Realtor Magazine, In Contract Magazine, Columbus Executive Woman's magazine, Business First and Buon Giorno magazine, to name just a few. She has contributed her time as a Speaker on numerous "Top Producer" panels in 1993-2010 (ytd). In 2002 DeLena was nominated for the Ernst & Young Entrepreneur of The Year.    
www.DeLena.com is brought to you by
DeLena Ciamacco
NUMBER1EXPERT™ in real estate for
Columbus, Westerville and Lewis Center, Ohio Read DeLena Ciamacco's
Privacy Guarantee,
Terms of Service,
and
Free & Without Obligation Pledge
|
|
NUMBER1EXPERT®
© Homes Media Solutions™, a division of Dominion Enterprises and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.
|
- NUMBER1EXPERT™ 
