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Christian Juarez

Helping is my passion. If you need a referral for anything in your home from handyman to landscaping call me at 505-553-0594.

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Real Estate Tips
Financing Your Home >The Margin on an ARM

When you are shopping for an Adjustable Rate Mortgage, the important thing to consider is the margin. Each time your loan is adjusted, the new interest rate will be tied to an index of Treasury notes. The margin is the percentage point above that index where your rate will be set.

Let's suppose that you have a one-year ARM with a 2.5 margin. Your initial rate was 7.5%, and during the first year of the loan, the index of 1-year Treasury notes was at 6.25%. The rate for the second year of your loan would be adjusted to 8.75%. With a margin of 2.75, it would increase to 9%. Some lenders offer lower initial rates with higher margins. In this case, the subsequent rates could be higher after the first year, than if you chose a higher initial rate with a lower margin.

If you are confused by the various mortgage offers, ask a professional mortgage broker to sit down with you and show you how it works. Today the rates and different financial possibilities are so variable that it is a good idea to talk to a mortgage broker--they usually know where the best rates can be found.

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Real Estate Trivia
Q 
Over what famous building is aircraft forbidden to fly at any time?

A 
No aircraft is permitted to fly over the Taj Mahal in India.
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Christian Juarez, REALTOR®, real estate agent and broker for Rio Rancho, Albuquerque and Corrales, New Mexico home listings, property and land for sale - NUMBER1EXPERT(tm)

Christian Juarez
Keller Williams Realty

9201 Montgomery Blvd., NE Building 101
Albuquerque, NM 87111
505-553-0594
Fax: 505-883-9244
Website email: ChristianJuarez@NUMBER1EXPERT.com
Personal email: Help@MyRealtorChristian.com

My goal is to gain as much knowledge as possible to be able to educate my clients on one of their most important transactions of their lives!

REALTORMLSePro


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