When Starkey Mortgage (WR Starkey Mortgage, LLP NMLSR #2146) helps a client decide which option would best meet their mortgage needs, there are a number of factors that we keep in mind. Borrowers who are settled enough to stay in their home for more than five years may find their safest option is the fixed rate mortgage. Fixed rate mortgages often offer more long term security, as the interest rate is not subject to change and therefore cannot be raised over time.

Adjustable rate mortgages (ARMs), on the other hand, have many advantages. ARMs typically have much lower interest rates for the first five years. This type of mortgage interest rate scheme is often called a 5/1 adjusted rate mortgage and usually has the option for yearly adjustments after the first five years. This may not be the best choice for homeowners who have long term goals when it comes to staying in their homes, but if the homeowner is planning on moving within the first five years or refinancing, this could be an option.

As with any choice when it comes to mortgages, there will always be pros and cons and borrowers need to consider the broader market when evaluating which type of mortgage is better. For example, on Oct. 28, 2013, Bankrate.com reported an interest rate of 4.16 percent for the average 30-year fixed rate mortgage and a rate of 3.22 percent for the first five years of an ARM. Because the fixed rate of 4.16 percent is historically low, this is a superb rate to lock in for the next 30 years. On the other hand, the adjustable rate of 3.22 percent is definitely going to increase after the first five years. Because the ARM is likely to cost a lot more in the long run, most people buying in 2013 are opting for a fixed rate.

At Starkey Mortgage, we provide in-house processing and underwriting, and we pride ourselves on timely closings and competitive rates. Starkey exercises controlled growth and works closely with homebuyers and builders to give them an assured experience.

For more information on Starkey Mortgage, please contact regional manager Doug Casbon (NMLSR #544324, Georgia License #33169) by emailing dcasbon@starkeymtg.com, calling 678.350.9020 or visiting www.WRStarkey.com.

Equal Housing Lender. 7000 Central Pkwy NE, Suite #1440, Atlanta, GA 30328. Branch NMLSR #909552, Branch License #60841. Phone: 678.350.9020.