Lenders are always looking for new ways to help buyers get into the home of their dreams. Today they frequently use adjustable rate mortgages (ARMs) to increase the buyer's options. The interest rate on an ARM changes periodically to reflect changes in the national market. Since the loan starts at a rate that is lower than the national average, lenders can reduce the borrower's qualifying criteria.

One way to distinguish between different ARMs is by the national index to which they are tied. Some ARMs are tied to a slow-moving index called the cost-of-funds index; these are usually the most desirable. ARMs that are tied to a more volatile index, such as Treasury Notes, can be adjusted upward at a quicker rate. Look at all the factors before choosing a loan. The faster index loan may start out with lower rates and lower monthly payments, but the slower index ARM may eliminate your concern about having to re-finance down the road.

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Stewart J Lowe
RE/MAX Real Estate Central
#206, 2411 - 4th Street NW
Calgary, AB T2M 2Z8
Cell: 403-850-0669
Fax: 403-547-5195
Office pager 24/7: 403-216-1600
StewartJLowe@shaw.ca

Remax Real Estate Central is the Number One Remax in the World based on closed transactions. Stewart J Lowe is a 2009 Top Producer, and member of Remax Western Canada 100% Club based on sales and service, and the Executive and Chairmans clubs. Quote from Stewart J Lowe "I want to be the real estate professional that really helps you, and keeps you in total communication. We like to work with a limited number of clients, individually taking the time to understand their lifestyle and their individual needs. Buying High End Real Estate with us as your team will be an enjoyable experience"