Tag : home buying

What is an ARM Mortgage?

by on 15 January 2014in Blog

What is an ARM Mortgage?

What is an ARM Mortgage? Flickr: USDAgov/Creative Commons

An ARM (Adjustable Rate Mortgage) is a type of mortgage where the interest rate fluctuates based on an index (often the 1-year treasury bill, LIBOR, or COFI). Why would anyone be interested in a relatively unpredictable payment plan? Because you can save money in the short-term. Typically, ARM mortgages in the United States are hybrid mortgages. They are structured so that there is an introductory fixed rate for an agreed upon number of years, while the rate on the remainder of the loan is adjusted periodically. This is attractive for some because the initial interest rate is lower than that of a FRM (Fixed Rate Mortgage) for a predetermined period of time before it is altered regularly for the remainder of the mortgage.

Is an ARM For Me?

An ARM may not be a bad option if you are only looking to live in your home for a short period of time or have a guaranteed increase in income over the next few years. ARMs are considered to be riskier than traditional FRMs because they are susceptible to market volatility. It is best to consult your financial advisor before deciding if an ARM is right for you.

Related Links

What is an ARM?

Military Ranks

Military Home Buying Tips

by on 4 December 2012in Blog

Are you thinking of getting involved in military home buying? Do you know other people who are enlisted who did? Well, if you don’t or if you are just browsing and thinking hypothetically, we have a few tips for you. There’s nothing like asking around about it on the base, but we can give you the basics from the VA.gov site:

1. Think about pre-purchase counseling. You will need to work out your emotions and thoughts during this process; therefore, we recommend you talk to someone who knows those thoughts and emotions well, and can help you rationalize them. Check with your base to make an appointment with someone who can steer you in the right direction.

2. Adaptive housing. There is such a thing and you are worth it. Talking to military home buying counselors will help you figure out what all the terms mean, as well as, what you need in a house if you have been injured. Do you need ramps? Do you need everything low? It is possible to find a house that will suite your needs, but you need to ask about it.

Military Housing

3. Get a VA loan. You are not pre-approved because you serve. Unfortunately, you still need to go through an application process to decide your eligibility and for how much. But, getting a loan through VA gives you more flexibility an options than a regular old loan directly through a bank. We recently wrote a blog about the benefits of VA Loans, make sure you read it.

4. Make a plan. Once you have done all of the grunt work, make a plan for your house. Map out your payments and your paychecks, and give us a call so that we can assist you with a closing cost grant (if you qualify). Make sure everything lines up so that you can pay on time every month. In addition, do you want to raise the value of your house? What projects can you take on to raise your house’s value?

RELATED LINKS
10 Reasons to Be Thankful You Live in America
VA Loan Calculators

Military Home Buying & Why We Are Thankful to be in America

by on 3 December 2012in Blog

America is a nation looked up to the world. Though we have own issues that we are working to resolve, we are still (and will be for a long time) the cultural inspiration for the world. That may be a bold statement, but during the holiday season we, here at Military Home Buying, are reminded why we live in this country and appreciate the sacrifices that our American heroes have made to keep our home great.

So, why are we thankful to live in America? For a number of reasons! Firstly, we are thankful for the history of dignified men and women who left their lives back at home to serve our country and keep it safe. These American heroes, as we mentioned earlier, are the backbone of our country. During the holiday season, one cannot help but remember that.

In addition, to that most important note, we also give thanks to our schools, commerce, and religious freedom. A defining feature of our country is also our sweeping and varying landscapes that stretch from sea to sea. We could not have had the innovation during the Internet boom that without had without the effort of our veterans.

Flag

image via Joe Campbell on flickr

The American dream, complete with the house and white picket fence, is still a cornerstone in our culture too and that tradition is another reason we are thankful to be in America. It may be harder to achieve these days, but we think our veterans deserve that dream more than any other. That’s why we work hard to help you in the military home buying process. We don’t want that to come off as a shameless plug; we truly are thankful for the American dream that has kept our country strong and we want to do whatever we can to help you be a part of that dream.