Don’t Settle for an ARM, Get Fixed Rate Condo Financing!
Financing for a condo is different than financing for a single family home or a zero lot line. For example, some lenders will only offer an adjustable rate mortgage (ARM) if you’re purchasing a condominium – which could cost you more in the long run! Discover why RMN believes in offering fixed rate mortgage for condo purchases:
Fixed Rate Condominium Financing
It’s important to understand that if you talk to the right lender, who offers fixed rate financing for condominiums, you may be getting a better financing option. You can finance with a fixed rate mortgage for a condominium with a VA loan a Rural Development loan, or a Conventional loan if the condo project meets program requirements. The majority of condo projects in our market meet the requirements and are eligible for approval. The lender you’re talking to needs to understand how you can get those condo projects approved, and they have to have the authority to submit them for approval.
Watch this short video to find out more:
Why is a Fixed Rate Important?
Despite recent increases, interest rates remain at a historically low figure. More importantly, virtually all economic projections anticipate continued rate increases in the future. “Okay, but what does that mean for me?” Well, pretty much every expert in the world is betting that if you get an ARM now, you will end up paying hundreds and hundreds of dollars in additional interest per month when the teaser rate expires in 5 years. It just doesn’t make any sense to take this risk when the reward is only a few bucks per month.
“But an ARM rate adjustment won’t affect me, as I plan to sell my new house within the next 5 years.” Life is uncertain. Things happen and plans can change in an instant. What if you decide you want to move into a new house in 5 years, but you’d also like to keep your current home and rent it out? Wouldn’t it be nice if you could continue to finance the home with a low interest rate that is locked in for another 25 years? Secondly, if rates actually do increase as much as many expect, you might not be so excited about buying a new house and paying interest that’s 1, 2, or maybe 3 percentage points greater than your current home loan. You might wish your current interest rate was fixed so you could simply stay in your present house and continue taking advantage of the great low interest rate. The future is always uncertain, but a fixed rate truly is your pot of gold at the end of the rainbow.
If you find a condo that you love, reach out to us first to find out if the project is already approved! If it is not, we will need some additional paperwork from the Home Owner’s Association. RMN has gotten hundreds, if not thousands, of condos approved all over the state of Iowa including Iowa City, Cedar Rapids and surrounding areas. We understand how to approve the condos and how to fit the process into our timeline so that we do not miss any deadlines.
Trust RMN for Your Fixed Rate Condo Financing
Of course, our approval process remains quick and smooth for condos with VA, RD, and Conventional financing. Our office has authority to process approvals for these programs, so we can get you fixed rate financing for any of these options. If you’ve been told by another lender that a condo project is not eligible for fixed rate financing, I encourage you to reach out to our office. Often times they are other ways that we can get a project approved.