Certain Homeowners Opting for Adjustable Rate Mortgages Because They Will Sell their Homes in the Next Few Years

If you don't plan to stay in your home, an adjustable rate mortgage could save you more monthly until you sell.


Michelle will be selling her home in the next 5 years, as the oldest child will be out of high school in 4 years. Her plans are to move down south. We examined what the payment would be for the 30-year fixed and the adjustable, that would be fixed for 7 years. Her rate was 2.75%, not bad at all!

In 5 years she would save an additional $6,000 over 5 years. Her overall monthly savings was $366 per month. Even though her plan is to sell within 5 years, I convinced her to have the rate fixed for 7 years, just to play it safe.

I seldom ever recommend anyone get an adjustable rate mortgage, but in Michelle’s case, it was the right choice.

Report Examines Effect of Consumer Expectations on Price Recovery

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