When you’re looking to purchase a new home, you probably first think of securing an affordable monthly payment. Buyers have several options when it comes to structuring a mortgage loan and, in recent years, many have chosen adjustable rate mortgages (ARM) to keep their payments affordable.
With all the various decisions that come with a home purchase, one of the most important is deciding between a 15-year mortgage and a 30-year mortgage. Both options have their benefits and drawbacks, so there’s no across-the-board “correct” answer. Besides, every home buying scenario is unique, so your rate will be unique to you as well. Weighing the pros and cons of both options is a great first step for finding the loan that’s best for you. For instance, let’s assume the 15-year rate for a loan is 4.0% and the 30-year rate is 4.5% and see how both affect a home-buying scenario.
The summer rally continued through August, once again defying market pundits and conventional wisdom. In the midst of this move higher, however, there has been wide disparity among the various sectors. The market continues to favor growth-oriented sectors given accelerating economic growth and consumer spending, as well as robust spending on technology to fuel efficiency gains, while rising interest rates have made yield-oriented sectors less attractive.