At the end of the month, the Federal Reserve is set to meet. The discussion will include whether or not they will raise interest rates. The question then becomes, how will that affect my monthly mortgage. Well if you have a fixed-rate mortgage, you will not be affected at all. But, if you have an adjustable-rate mortgage (ARM), you may see your monthly mortgage payment increase.

It’s no secret that I am in no way a fan of ARMs. They can be difficult to understand, and buyers can get locked into conditions that are hard to interpret such as margins, caps, adjustment indexes and other things. And if federal interest rates do rise, you may be looking at higher monthly mortgage payments that could possibly send you into sticker shock.

With a fixed-rate mortgage, you know what you are paying. It is a definite and your monthly principal and interest won’t change. Currently, interest rates are at an all-time low so taking advantage of a low fixed-rate mortgage is a no-brainer.

So, before you choose an ARM or fixed-rate mortgage, ask yourself a few questions:

1. How long are you going to stay in your home?
2. How frequently does the ARM adjust?
3. What is the current state of the interest rate environment like?

Or just call 985-612-1900 and speak directly to me, Dwayne Stein, at my day job. I will be more than happy to help you get on the right path to homeownership by taking the very best course possible.