Whether you’re buying a large farm for sale in Lake City, a cattle ranch in Columbia County, or an estate home in Lake City, you’ll most likely have to take out a mortgage to buy your next property. When you do, you’ll have several choices – including fixed-rate and adjustable-rate loans.
But what are the differences between them?
Fixed-Rate vs. Adjustable-Rate Mortgages
A fixed-rate mortgage is one in which the interest rate doesn’t change over the life of your loan. That means your monthly payment stays the same, no matter what interest rates do for new borrowers.
An adjustable-rate mortgage, which is commonly called an ARM, has a variable interest rate that changes periodically after an initial period where it’s fixed. Usually, the interest rate changes each year after the initial fixed-rate period. For example, a 5/1 ARM loan has a fixed interest rate for the first five years; after that, the interest rate fluctuates each year.
Which Type of Loan is Right for You?
You’ll have to talk to your lender about the terms they’re willing to offer you on each type of loan to make the best possible decision. If you don’t have a lender, talk to your Lake City Realtor® – he can refer you to a local professional.
Do You Need to Talk to a Lake City Realtor® About Buying a Home?
Whether you’re buying a house, a farm, or a tract of timberland, we can help you find something that’s just right for your needs.
Call us at 386-243-0124 or contact us online. We may be able to help you find the perfect property in Lake City or the surrounding communities.
In the meantime, check out our:
- Waterfront residential
- Waterfront land
- Bank-owned and foreclosures
- Short sales
- Paved road frontage
- Non-deed-restricted land
- Wooded oak tree land
- Land for land home combo
