Vermont Mortgages

Mortgage forecasts are predicting rate hikes this year, but that will not affect the strong Vermont market. Vermont Real Estate remains a strong investment, as home prices continue to appreciate. With this in mind, there are many Vermont mortgages that are great for investment purchases. A Vermont adjustable rate mortgage (ARM) is a good mortgage to consider when investing due to low introductory interest rates and low monthly payments. Typical Vermont adjustable rate mortgage terms are 2/1, 3/1, 5/1, and 7/1 (although other options are available). For example, a Vermont 2/1 ARM is fixed at an introductory interest rate for the first two years, and then adjusts every year thereafter. Vermont Adjustable Rate Mortgages are based on an economic index and a margin. It is important to fully understand the index and margin associated with your loan; All are different and some are more volatile than others which could affect your interest rate and monthly payment in the long run. A Vermont adjustable rate mortgage tends to be a riskier loan for borrowers due to unpredictable market trends which could cause your margin or interest rate to increase.

A more stable, predictable loan product is a Vermont fixed rate mortgage. Vermont fixed rate mortgages have a fixed interest rate and monthly payment for the entire term of the loan. Typical Vermont fixed loan product terms are 30 years, 20 years, and 15 years. Vermont fixed rate mortgage products usually carry higher premiums than do Vermont adjustable rate mortgages in the form of the interest rate. Many borrowers feel the stability of a fixed rate and payment for the life of the loan outweigh the slightly higher premium. Call today to speak to a representative about your options for a Vermont ARM or Vermont fixed rate mortgage today 1-877-673-3282!