abby tiscareno

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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

 Every situation deserves its own review, abby tiscareno  ... but in the case where adjustable rates are lower than a fixed rate (that is not always the case) and the Borrower is likely to sell, refinance, or otherwise payoff the adjustable rate loan prior to its term ending ( 5 yr, 7 yr. etc.) ending, the adjustable rate loan absolutely could be warranted ... and should at least be considered.  

I find upperly-mobile executives ... or those in employment positions where they are likely to be transferred ...  are most open to discussing an adjustable rate loan, as a rule.  

Good question ...


Feb 11, 2017 07:15 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

When you know absolutely, positively, without a doubt that you are going to move in the next 3-5 years.

Feb 10, 2017 11:30 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

When the fixed rates are higher by quite a bit and you expect the rates to come down. 

Feb 10, 2017 09:49 PM
Diana White-Pettis
Bennett Realty Solutions - Upper Marlboro, MD
GRI, CDPE, CNE, WHC Upper Marlboro Homes for Sale

When you definitely plan to stay in the home for no more than 5 years, but I would talk with a loan officer and go with his or her advice.

Feb 10, 2017 08:55 PM
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Hi Abby

Usually poor form to share a link here, but I just wrote a blog about this very subject --- an ARM is a good choice for more than one circumstance:


One thing I didn't mention in my blog for the sake of brevity is that FHA ARMs only adjust a maximum of 1% each year, so they are good options because there's never an enormous year over year payment shock.  If things go up, they won't go up too much.


Feb 10, 2017 11:35 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


What Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi said.

Feb 11, 2017 09:04 PM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

The last 10 years has been awesome to be in one, but now it's time to lock and load the 30 year. UNLESS you need a short loan-3-5 year deal. Timing the market is like day trading though.

Feb 10, 2017 07:16 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Usually when you will be in a home for less than 5 years. With todays still low rates, a 30 year fixed rate is the way to go as we all know rates are only going to go up. 

Feb 10, 2017 06:55 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Every buyers need is different. There is a loan for everyone depending on their circumstances! Talking through your own situation with a lender will help them tailor a loan just for you!

Feb 10, 2017 05:08 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

When income is tight...the lower the payment the better

Feb 10, 2017 03:02 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

abby tiscareno It depends on the borrower's need and qualification.

Feb 10, 2017 02:53 PM
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

That depends on each borrower's need. It will vary depending on the time one plan on residing at the property, their monthly expenses, job stability, etc.

Feb 10, 2017 02:38 PM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

When you don't care about risk.

Feb 10, 2017 01:38 PM
Julie Larson Realtor® Sarasota FL 941-284-9826
White Sands Realty Group FL | 941-284-9826 | Serving Sarasota, Manatee & Charlotte Counties - Sarasota, FL
When you're thinking of

I wish I still had the article. One of my GRI instructors wrote an article about how an ARM is a better choice than a fixed mortgage over the course of 30 years. If I can find it, I'll share his numbers.

Feb 10, 2017 12:53 PM
Toronto, ON

It depends on the individual's situation as well as other factors.

Feb 10, 2017 11:58 AM
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

Depends  a lot on the clients situation.. if they need to qualify for the property and they are in a profession where their income is going to rise very fast that would be one example of when it might be the better choice

Feb 07, 2018 08:52 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

when rates are going down.

Apr 08, 2017 10:24 PM
Harry F. D'Elia III
Avant Garde Residential Management Services - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

ask a professional

Feb 13, 2017 04:35 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

It isn't up to us to determine that, it is up to the Buyer when talking with the lender.

Feb 12, 2017 10:53 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

It depends.

On the borrower.  On the situation.  On the goals.

A knowledgeable mortgage professional who asks the right questions and listens to his/her client will be able to offer the best advice.   

Feb 12, 2017 06:10 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

That would depend on the buyer and the buyer's situation. 

Feb 11, 2017 09:30 PM
Ryan Huggins - Thousand Oaks, CA - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I'd check with your lender and your tax advisor.  I saw a lot of ARMs back in the day where people thought "I'll sell the house in two years before it adjusts and make a killing!  The market is only going up and up!!"  In reality, the market tanked and these people lost everything when the loan reset to the higher rate.


IMHO I'd never recommend or use and ARM.

Feb 11, 2017 11:10 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

There are pros and cons on a adjustable rate.  Get with your lender.

Feb 11, 2017 10:14 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

In most cases, when the buyer doesn't plan on keeping the home for a great length of time.

Feb 11, 2017 09:08 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Long term versus short term. Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi has provided a deeper explanation of why.

Feb 11, 2017 09:07 AM
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

More data needed.

Both were created to address those in well defined situations. You offer no data identifying the situation.

IN some cases, the buyer goes with the loan they can get.

IN best cases the buyer goes with the loan with an exit strategy the buyer will execute.

The common case is one of good intentions but disappointing outcomes.

Feb 11, 2017 07:05 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

abby tiscareno When it meets the buyer's needs for a mortgage.

Feb 11, 2017 06:59 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

If you are subject to transfer or relocation in a short period of time!

Feb 11, 2017 06:50 AM
Roy Kelley
Retired - Gaithersburg, MD

Use the program that best meets the needs of the borrower. Fixed rates are better for the majority.

Feb 11, 2017 06:39 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

When it's lower than a fixed and when the buyer has no risk of a rate going up because he/she will sell the home before then.

Feb 11, 2017 04:30 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Richard Weeks nailed this one!

Feb 11, 2017 02:28 AM
Kasey & John Boles
Jon Gosche Real Estate, LLC - - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

They can be a good option for short term holding of properties.

Feb 10, 2017 10:08 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Exactly what Richard Weeks said but, Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi may be able to answer your question better.

Feb 10, 2017 07:42 PM
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

I'm just following to hear what other people think.

Feb 10, 2017 07:35 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

When you only plan to  stay in your purchase a few years...

Feb 10, 2017 03:52 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

A loan officer can explain based on your needs.

Feb 10, 2017 01:52 PM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

With rates this low - hardly ever

Feb 10, 2017 01:19 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

if your stay in the home is not long term.... 

Feb 10, 2017 11:27 AM