Tacoma, Gig Harbor and University Place real estate and homes for sale in Washington, waterfront homes, view homes - Mike Flynn, REALTOR® Mike Flynn REALTOR(r) for Tacoma, Gig Harbor and University Place, Washington real estate, waterfront homes, view homes - NUMBER1EXPERT™ Mike Flynn NUMBER1EXPERT(tm) for Tacoma, Gig Harbor and University Place, Washington real estate, waterfront homes, view homes
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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 
What is the largest city square in the world?

A 
Located in Beijing, China, Tianamen Square, called the "Gate of Heavenly Peace", covers 98 acres.
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Mike Flynn, REALTORŪ, real estate agent and broker for Tacoma, Gig Harbor and University Place Washington home listings, property and land for sale - NUMBER1EXPERT(tm)

Mike Flynn
John L. Scott/University Place

4970 Bridgeport Way W
University Place, WA. 98467
253-566-3889
253-222-5911
253-565-1010
Fax: 253-564-6004
Email: mikeflynn@NUMBER1EXPERT.com

Want local knowledge? Mike Flynn grew up right here in Gig Harbor and Tacoma, and has built a thriving, award-winning practice by helping folks succeed in their real estate goals. You can count on Mike for professional handling of your transactions, whether personal or for investment. Call or e-mail him today!

ABRCRSGRIREALTORSRES


John L. Scott/University Place real estate and homes for sale in Tacoma, Gig Harbor and University Place Washington

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