If you’re buying land for sale in North Florida, you’ll have a few options for financing. You can pay cash for the land—one of the least common options—or you can take out a mortgage. When you’re looking at mortgages, you’ll have the choice between a fixed-rate and an adjustable-rate mortgage… so what’s best for you?
What is a Fixed-Rate Mortgage?
A fixed-rate mortgage is a loan from a lender that gives you the same interest rate over its entire lifetime. No matter how interest rates fluctuate, you’ll pay the same amount until your loan is paid off.
Pros:
- Your rate stays constant
- Your payment doesn’t change
- You can factor your payment into a long-term budget
Cons:
- You’ll have to refinance if you want a lower interest rate
- Payments are often higher on a fixed-rate mortgage than they are on an adjustable-rate mortgage
What is an Adjustable-Rate Mortgage?
An adjustable-rate mortgage, or ARM, is a loan from a lender that has a fluctuating interest rate. Typically, you’ll have a fixed-rate period—say 3, 5, 7, or even 10 years—but after that, your mortgage interest rate will go up and down each year as the market changes.
Pros:
- ARMs often have lower interest rates and payments
- It’s easier to get approved for a larger amount of money
- You’ll get lower rates without refinancing if rates go down
Cons:
- After your fixed-rate term, your rate and payments can go up quite a bit
- If you have a negative amortization loan, you could end up paying even more for your home
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If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
In the meantime, check out the most popular Lake City home searches by exploring the links below.
- Waterfront Residential
- Waterfront Land
- Bank-Owned & Foreclosures
- Short Sales
- Paved Road Frontage
- Non-Deed-Restricted Land
- Wooded Oak Tree Land
