

|
All agents are NOT alike! Find out why we are top real estate experts. Call us: 314-677-6100
|

Buyers Want Your Home for as Little as Possible. Are you thinking of selling your home? You should know exactly what it's worth before making such an important decision. Find Out More > View All Offers >
|
Compare three mortgages
at one time. Download TripleCalc now. It's free.
|
The Dave Bueker ''Smooth Move'' Team is one of The Top Selling Real Estate Experts Find Out More > |
|
|
|
|
Financing Your Home >ARMs
Here is a tip for those who are shopping for Adjustable Rate Mortgages (ARMs): the "margin" is almost as important as the initial rate. The margin is the percentage point above the average yields for Treasury notes on which future rate adjustments will be calculated.
Let's compare two hypothetical one-year ARMs. The first may have an initial interest rate of 7% with a 2.5 margin, while the second begins at 6 7/8% with a 2.75 margin. Both loans have rate caps of 2%. Suppose that at the end of the first year of the loan, the average of the one-year Treasury note yield has been 5 1/2%. For each loan, the lenders will add the margin to that 5 1/2% average yield. Thus the interest rate for first loan would increase from 7% to 8%, and the second would go from 6 7/8% to 8 1/4%. While the first ARM had a slightly higher initial rate, it will have lower rates in subsequent years, unless the Treasury note rates increase enough to activate the annual caps on the amount of the increase. There is a wide variance among margins in ARMs offered by competing lenders, and this should be a factor when you decide on your loan.
|
| Q |
What house is thought to be the first one designed by Frank Lloyd Wright?
|
| A |
Charnley House in Chicago, Illinois, is considered to be the first home designed by Wright while at Adler & Sullivan. |
See More Real Estate Trivia > |
|

|
The Dave Bueker 'Smooth Move' Team Keller Williams St. Louis 10936 Manchester Rd. Kirkwood, MO 63122 314-677-6100 Fax: 314-677-6103 Email: davebueker@NUMBER1EXPERT.com
Dave Bueker is one of the most dedicated and committed real estate professionals in the St. Louis area. The Dave Bueker "Smooth Move" Team dedicates 100% of its time delivering first-class service to its customers. We are interested in building strong, lasting, lifelong relationships...one person at a time. 
www.DaveBueker.com
is brought to you by The Dave Bueker ''Smooth Move'' Team
NUMBER1EXPERT in real estate for Crestwood, South St. Louis County and Sunset Hills, Missouri
Read The Dave Bueker ''Smooth Move'' Team's
Privacy Guarantee,
Terms of Service,
and
Free & Without Obligation Pledge
|
NUMBER1EXPERT®
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.
|