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Kenny Gays
Principal Broker / REALTOR
®, SFR, ABR
Smoky Mountain Real Estate Corp.

459 Glades Road
Gatlinburg, TN 37738
Phone: 865 805-2541 Cell Direct
Office: 865 277-8115
Fax: 8777151213
Email: kennygays@investthesmokies.com

Cabins For Sale in
Gatlinburg Tennessee

Homes for sale

 

 

 

Thank you for visiting my site today. If this is your first visit, take your time and look around. I have plenty of information and resources available to You. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.

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Adjustable Rate Mortgages - The PROS & CONS

Now that you know what an ARM is and how it works, you may be wondering what the advantages and disadvantages are. So let’s explore that issue.

Offering adjustable rates allows lenders to transfer part of the interest rate risk from themselves to the borrower. If you get a fixed rate mortgage and the interest rate then goes up, it costs the lender money. However, if you have an adjustable rate mortgage, as the interest rate goes up, so does your payment, thus compensating the lender. Adjustable rate mortgages are particularly useful when unpredictable interest rates make fixed rate loans hard to get.

One of the main advantages of an adjustable rate mortgage is that the initial interest rate is lower than that of a fixed rate mortgage. A lower rate means lower payments, which may help you qualify for a larger loan. This is an important detail if you expect your future earnings to rise. In this case, the ARM will allow you to qualify for a larger loan amount earlier rather than later.

However, this information should only be used with care. If you use an ARM to qualify for a larger loan amount than a fixed rate would allow you and the interest rate then rises drastically or your income doesn’t rise, you may not be able to afford the larger monthly payments, thus causing you to default on your loan.

A situation in which an adjustable rate mortgage makes sense would be if you are only going to keep the house for a short period of time. If you are only planning to own your house for only a few years, the risk of the interest rate rising goes down. This means that you will get a better rate with an ARM, making it a good choice. However, if you plan on staying in your home for a long period of time, a fixed rate may be a better option.

The lesson here is to have a plan. Know what your goals are in purchasing a home and plan for all eventualities. Do your research when shopping for an ARM and consider the worst-case scenario.

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Testimonials

Here is what georgethomas wrote: How likely are you to recommend this agent? highly likely Rate agent on specific characteristics Local knowledge: ***** Process expertise: ***** Responsiveness: ***** Negotiation skills: ***** Summary of their experience Kenny Gays sold 2 rental properties for me and helped me find a home in Sevierville for my personal use when I moved from Florida in 2008. As a listing Agent he helped me sell 2 rental properties in Gatlinburg during a very difficult real estate market. As a Buyers Agent he went way above and beyond the call of duty helping me find a personal residence. He spent several days searching for a property he thought I would like before I even arrived here to begin my search. He worked with me for almost a week showing me different properties before I finally made my decision. As both a Buyers Agent and a Listing Agent I found him to be helpful, sincere and honest. He always worked in my best interest and never tried to push me in any direction although he did give me invaluable advice at times. I will always be indebted to him because the house he found for me has turned out to be the house I am enjoying more than any house I've ever owned. Whenever I need to buy or sell property I will certainly contact Kenny. I highly recommend him. Service provided Helped me buy and sell homes From Zillow.com George Thomas
Kenny helped us find our dream cabin in Gatlinburg. We were unsure of the foreclosure process but Kenny helped us through the entire process and made us feel at ease with our purchase. Thank you The Marcil Family
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