Adjustable Rates for Mixed Use Property
Adjustable Rates for Mixed Use Property: What you Need to Know
When going for a loan to finance or refinance a mixed use or commercial property, you have two options: a fixed-rate and an adjustable-rate mortgage (ARM). Here, we look at adjustable rates for these two property types.
What is a Mixed Use Property?
This property incorporates both residential and commercial units in the same establishment. Mixed use property is becoming appealing due to its commercial potential. You can use the rent to repay the loan amount, thus build the necessary equity faster.
Adjustable Mortgage Rates
This starts with a low introductory rate for the first 3, 5 or 7 years. During this time, you pay a fixed interest rate on the loan amount. After the fixed period, the rate adjusts according to the term of the loan, and the index tied to it.
For example, a 5/1 ARM tells you that the rate is fixed for the first five years, then it adjusts every year until the term ends.
Is This Rate Ideal for Everyone?
An Adjustable loan is suitable if you plan to sell your property after a few years, just before the adjustment sets in. This enables you to enjoy the low monthly payments before they spike. This adjustment period might be monthly, quarterly, or twice a year.
The 30-year period keeps monthly payments low, which can save you significant amounts of money. This makes the loan appropriate if you desire low monthly payments.
Why Should You Consult Us?
It is true that you can get the loan on your own, but the process will be long and tedious. At Mixed Use Mortgage, we make everything easy for you. We have cleared any hurdles in your path to ARM financing so that you can get your loan at the shortest time possible, at the best rates.
Don’t hesitate to give us a call and discuss your options, consultation is free and never a fee.
To contact us by phone call (800) 535-0270 or email us by clicking here.