Are you exploring your loan options for a home purchase or refinance? An adjustable-rate mortgage has an introductory interest rate that is fixed for a set period of time and then adjusts to market for the duration of your loan. The advantage to an ARM loan over a conventional fixed-rate mortgage is that the initial interest rates of the ARM are usually lower meaning your initial monthly mortgage payments are lowers. Keep some extra money in your pocket for the first few years. Get a free rate quote to explore your mortgage options.
Do celebrities need a mortgage?
Often times when we think about celebrities owning homes, we just assume that they buy their homes outright. For some celebs, that may be the case but for someone like Mark Zuckerberg, he decided to finance his home with a 30-year adjustable-rate mortgage. Why did he do this? Because it costs him nothing, Zuckerberg’s interest rate at the time of purchasing hos home was at 1.05%, according to csmonitor.com. With that low of an interest rate, Mark is essentially borrowing money for his home, for free. This is a smart move for him. When you are in a place like Mark Zuckerberg, not having your money tied up in a mortgage is a good thing. This way, he is able to use his money for more profitable things and events.
Watch the video below to learn more about ARM loans and how this type of loan could put you in a better financial position.
If you are currently looking for a mortgage that fits your needs, get a free rate quote to see all of your options and connect with one of our dedicated mortgage advisors. Follow @vLoanMortgage on Facebook, Twitter or Instagram to keep up to date with our monthly campaign #BeMortgageCultured.