Are adjustable rate mortgages still a good way to go?
If you don’t plan to be in your home for more than five years, adjustable rate mortgages with a fixed period of three to 10 years can still be a good vehicle to get into the market. Starting interest rates are in the low 5 percent range, so if you know you want to take advantage of the current prices and perhaps move into a different home in a few years or use your home as an investment, this type of loan is still better for those buyers than a 30-year fixed mortgage. Have lending qualifications changed? Lenders are looking for security, so having a good FICO score, a low debt-to-income ratio as well as history of no late payments, especially no late mortgage payments, is important. But if you don’t meet all the qualifications, you may still be able to jump into the market by following one of these recommendations: First, before applying for a loan, get a copy of your credit report and clear up any errors. If you don’t have a stellar history, you may have time to establish a better tra
