Buyer’s Home: Your Exclusive Columbus Buyers Agency

Adjustable rate mortgage ColumbusAs interest rates rise, adjustable-rate mortgages, or ARM loans, are on back on the table for Columbus home buyers. Before you decide on an ARM loan, keep these tips in mind!

ARM loans are available under Conventional, FHA and VA mortgage programs. ARM loans typically offer a temporary, fixed-rate period of three, five, seven or ten years before converting to an adjustable rate. Once the adjustable rate period kicks in, your interest rate could change every year thereafter.

For example, if you have a 5/1 arm with a 30-year term, the first five years of your loan would have a fixed interest rate. At year six, your interest rate may change, affecting your payment. It could change again year seven, year eight, and so on. Meanwhile, you are still committed to the same term. Your loan will re-amortize after every rate change to keep payoff within 30 years.

In other words, your monthly payment can increase year-over-year, depending on the rate environments at the time. However, today’s ARM loans are less toxic than those prior to the Great Recession. Initial interest rates on ARMs are no longer artificially low, which helps prevent oversized rate increases later. There are also caps on annual rate increases, and lifetime limits to keep rate hikes from spinning out of control. There are no pre-payment penalties.

ARMs can save you money, but the difference in rates between a 30-year fixed rate mortgage and a 5/1 ARM will vary with the market. It might be a full percent difference, sometimes more, sometimes less. As you go up to 7/1 ARMs and 10/1 ARMs, you’ll find less of a discount in the ARM rates vs. the typical fixed-rate mortgage.

Before taking an ARM loan, review the rates and loan costs carefully. Evaluate the payment savings against your tolerance for risk. You can learn more about ARM loans with our free e-book, “How to Buy a Home like a Pro!” It’s available by instant download at this link, and there is no obligation.

Need more info? Let us refer you to trustworthy, local lenders who will explain all of your options. And because we provide our Buyer-Clients fiduciary representation, we can help you review and compare your mortgage offers, too!

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

Columbus mortgage Higher interest rates have taken a bite out of Columbus home buying budgets. Fortunately, there are strategies to help you get the best mortgage for your Central Ohio home purchase!

1. Get a mortgage pre-approval from more than one lender. Compare the rate, fees, terms and overall costs of each financing offer. As long as the financing inquiries are performed within the same week or two, your credit score will not be affected by multiple credit checks.

2. If possible, make a larger down payment. The less you have to borrow, the less risk the lender has in the deal. This can help you earn better rates in the mortgage offers you receive. If you have other debts that are at a higher interest rate than your mortgage consider paying those higher rate debts first. If you have extra money always “invest” in paying off your highest-rate debt!

3. Consider paying a point or two. A point is interest you pay in advance at closing. Each point is equal to 1% of the amount borrowed. Paying points can help you “buy” a better interest rate. However, you’ll need to keep your home longer to make paying points worthwhile. Definitely consult with your Exclusive Buyer’s Agent to analyze what is in your best “interest.” Tip: if your lender offers to “roll” points into your mortgage balance, think twice. This amounts to paying interest on the pre-paid interest!

4. After careful analysis you may wish to pay off some outstanding credit card balances and installment loans. Eliminating or reducing your consumer debt will improve your credit score and reduce your overall debt-to-income ratio. Reducing the outstanding balances to less than 30% of your debt limit will also improve your FICO scores. In turn, you’ll qualify for better rates and perhaps a higher mortgage amount.

5. Consider an Adjustable-Rate Mortgage (ARM). These offer a fixed rate of interest for a set number of years before converting to an adjustable rate. The length and rate of the initial lock is crucial to determine if this is a good option or not. ARMs can help you save on interest during the early years of home ownership. But once the “adjustable” term begins, your payments could increase. We’ll talk about in our next blog post.

6. Get our free e-book, “How to Buy a Home like a Pro,” for more home buying strategies! It’s yours without any obligation, and you can download it right now.

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

Quarterly Market Statistics – 1st Quarter 2022

May 10, 2022

Below you’ll find market statistics separated by school district, as well as last quarter’s closed sales and median sales price graphs. Bexley Pickerington (Corp.) Columbus CSD Reynoldsburg CSD Dublin CSD South-Western CSD (Grove City) Gahanna Jefferson CSD Sunbury (Corp.) Grandview Heights (Corp.) Upper Arlington CSD Hilliard CSD Westerville CSD New Albany Plain LSD Whitehall (Corp.) […]

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Andrew Show Named 2022 Broker of the Year by Columbus REALTORS®

April 19, 2022

Andrew Show, founder of Buyer’s Resource Realty Services, has been named the 2022 Broker of the Year by Columbus REALTORS®. This is the highest honor issued by the 10,000 member organization, recognizing just one Columbus area REALTOR®-Broker each year for their exemplary business experience, conduct, civic activity and industry involvement. Andrew will be presented with […]

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Cash Buyers Gain Ground in Columbus Real Estate

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Columbus home buyers remain under pressure in the early months of 2022. The latest report from Columbus REALTORS® shows a continued rise in home prices, with a growing number of sales attributed to all-cash buyers. The average sales price of a Columbus Metro home reached $296,489 in February 2022, an increase of 11.1% compared to […]

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Is Now a Good Time to Buy a Columbus Home?

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After two years of pandemic upheavals, consumers are now grappling with soaring inflation and geopolitical concerns. Drops in the stock market have weakened 401k balances, while the Federal Reserve has signaled higher interest rates in the days ahead. Some economists are predicting a recession in the not-so-distant future. In light of all this, Columbus home […]

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Michael Marshall at Buyer’s Resource Realty Services Receives Angi Award

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Buyer’s Resource Realty Services, the premier Exclusive Buyer’s Brokerage in Central Ohio, is proud to announce Michael Marshall’s receipt of the 2021 Angi Super Service Award. Michael has been an Associate Broker with Buyer’s Resource Realty Services since 1996, and has been a member of Angi since 2006. He has been recognized with annual Super […]

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Columbus Home Demand Shows Strong Start in 2022

February 23, 2022

Columbus area home buyers hit the ground running in the New Year, making January 2022 home sales the highest on record for any January. Median home prices increased 11.1% on a year-over-year basis, reaching $250,000. Calculated as an average, prices increased 10.4% year-over-year, hitting $290,847. According to Columbus REALTORS®, 91.3% of all new listings in […]

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Winter 2022 Home Buyers Face Unique Challenges, Experts Say

February 17, 2022

Bargain-hunting home buyers often focus on winter or off-season months to maximize their purchasing power. However, home-buying experts recognize unique challenges for winter 2022. The nonprofit National Association of Exclusive Buyer Agents (NAEBA) surveyed members nationwide to gather information for consumers considering buying a home this winter. The two-part survey sent to NAEBA members examined […]

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Quarterly Market Statistics – 4th Quarter 2021

January 28, 2022

Below you’ll find market statistics separated by school district, as well as last quarter’s closed sales and median sales price graphs. Bexley Pickerington (Corp.) Columbus CSD Reynoldsburg CSD Dublin CSD South-Western CSD (Grove City) Gahanna Jefferson CSD Sunbury (Corp.) Grandview Heights (Corp.) Upper Arlington CSD Hilliard CSD Westerville CSD New Albany Plain LSD Whitehall (Corp.) […]

Read the full article →