Every December, the sweet town of Athens transforms into a Christmas town that rivals those in most Hallmark movies. Downtown is lined with lights, the Christmas tree is decorated and displayed by city hall, and the local businesses are all bustling with shoppers. Here are some fantastic events coming up in Athens, GA this holiday season that you won’t want to miss:
An adjustable rate mortgage, often referred to as an ARM, is a type of home loan with an interest rate that fluctuates with the market. This is in perfect contrast to the fixed-rate mortgage, which has the same interest rate for the life of the loan, meaning your monthly payments stay the same.
Prospective home buyers have the choice between an adjustable rate and a fixed rate mortgage, so it is important to understand their differences. An ARM home loan has two periods: the fixed period and the adjustment period. The fixed period is at the beginning of the loan’s life (generally the first 5-10 years) and during this time your interest rate will not change. The adjustment period is when your interest rate may fluctuate depending on the market. It is important to note that with an ARM in the fixed period, you will likely have a lower rate initially. The concern many have with this type of loan is that if interest rates spike during the adjustable period, so does your rate. The reverse is also true, meaning if interest rates fall dramatically, so does your rate.
As we see rising interest rates going into 2023, you may consider asking a lender about the option of doing an ARM loan. You will be given a smaller initial interest rate during your fixed period with the hope that once you reach the adjustable period, inflation and interest rates will go down, making your monthly payments smaller. It’s also important to remember that you can always refinance!
NOTE: Always ask your lender any pertinent questions about loans! Whereas realtors are very market savvy, the lenders specialize in mortgages and interest rates. So, ask an expert before you make your decision.
Here’s what is happening in the Georgia real estate market right now…
As we move into colder months, a lot of people are curious about the rising interest rates and whether or not now is the time to buy or sell. Here are some market statistics to keep in mind when considering buying or selling a home right now:
First of all, why are interest rates going up? Interest rates are raised in an effort to curb rapid inflation and rising home prices. Higher rates slow people from borrowing money and therefore spending that money, which encourages prices to lower.
There is a growing gap between a property’s original listing price and what it actually sells for. Price reductions are becoming more and more common as seller’s set their minds on high prices that were realistic months back, but are no longer within reach for most buyers due to higher interest rates.
The median sold price in single family homes has been just under $300,000 for the last three months.
It is important to remember that interest rates always fluctuate, and you can still grow your equity in this market. How, you ask? Talk to a realtor!