Although we are not lenders, it is very exciting to hear that Adjustable-Rate Mortgages are once again becoming an option for homeowners. With interest rates expected to average 5% on a thirty-year fixed mortgage in 2014, Adjustable-Rate Mortgages are again gaining in popularity despite practically vanishing during the housing bust. Adjustable-Rate Mortgages, also known as ARM Mortgage, means a borrower receives that interest rate for the length of years indicated before the interest rate adjusts annually with the market. For example, a 5/1 ARM Mortgage at 3% would mean that the interest rate is 3% for five years and will adjust every year after the 5 years. Home prices and interest rates rose in 2013 which took a lot of potential homeowners out of the market to purchase. They simply could not afford the house payment. With an ARM Mortgage, these potential homeowners could purchase a home and keep the monthly payments affordable. According to the LA Times, in November 2013, 11.2% of homes were purchased with an Adjustable-Rate Mortgage. DataQuick reports that this has doubled since November 2012.

As real estate agents, this is great news for potential homeowners although there are many factors to consider. We have several lenders that we refer to our clients so they can have as much information as possible before deciding on what kind of loan they should get. We firmly believe in exploring all of your options before making a decision. Buying a home is one of the biggest investments you are going to make in your life and it should not be taken lightly. That is why we ask that you give us the opportunity to discuss your real estate options.

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Glenn Holtz & Tanya Gabriella

CA BRE #01233684 • CA BRE #01475393
Glenn: 760-518-3511 • Tanya: 760-535-1962
gcholtz@aol.com • tanyagabriella@yahoo.com
www.SDRealEstatePros.com
7030 Avenida Encinas #100, Carlsbad, CA 92011