| So you have found that perfect townhome in Houston, | | | | will rise and fall with the interest rates. Adjustable rate |
| TX. When you are ready to buy, you may be | | | | mortgages are generally easier to qualify for. They |
| overwhelmed with the number of mortgages available | | | | also usually start out at a lower interest rate than a |
| today. Fortunately, mortgages can be narrowed down | | | | fixed rate mortgage. Lower income levels may be |
| to two major categories. | | | | accepted because of the starting lower interest rate. |
| Fixed rate mortgages are loans that have a fixed | | | | If you decide to go with an adjustable rate mortgage, |
| interest rate throughout the life of the loan. This can | | | | then there are some things to consider. Your monthly |
| make budgeting easier since your payment will not | | | | payment can change depending on current interest |
| fluctuate due to interest rate changes. Keep in mind | | | | rates. Your payment may go down if interest rates go |
| that taxes and insurance payments included in your | | | | down, but be prepared for when they go up. |
| mortgage payment can make your payment fluctuate, | | | | Sometimes interest rate hikes can make payments |
| usually yearly, but it should only be by small amounts. | | | | unaffordable to many families. Also, keep in mind that |
| There are a few things to be aware of if you do | | | | adjustable rate mortgages usually start out lower than |
| choose a fixed rate mortgage. Fixed rate mortgages | | | | fixed rate mortgages, but usually increase after the |
| can require higher incomes than adjustable rate | | | | first year. |
| mortgages to qualify. You may also need more | | | | If you do not plan on owning your townhome for very |
| money down. Your interest rate may start out higher | | | | many years, then an adjustable rate mortgage could |
| than an adjustable rate mortgage would. If national | | | | work to your advantage. If you plan on owning your |
| interest rates drop below what you are paying, then | | | | townhome for a long period of time, then a fixed rate |
| you may have to refinance to get the lower interest | | | | mortgage may better suit your needs. |
| rate. Refinancing may be limited to a certain number of | | | | Talk with a financial advisor before you settle on the |
| times for the life of the loan or a certain number of | | | | right mortgage for you. Townhomes for sale in |
| times per year. When you refinance, you may be | | | | Houston, TX are a hot commodity. You need to make |
| required to pay closing cost again. | | | | sure that you make a wise decision about your |
| An adjustable rate mortgage is one whose payments | | | | mortgage when purchasing yours. |