Columbia SC Mortgages: ARM’s Making a Comeback

When it comes to Columbia SC mortgages, it appears that adjustable rate loans are becoming more popular once again.

Columbia SC mortgages are shifting to the popularity of adjustable rate loans againAdjustable-rate mortgages, whose rates can jump after a few years, are believed to have been one of the biggest culprits of the housing crisis. However, banks say they are concentrating on making the loans to buyers with strong credit who are looking for larger loans — not to "sub-prime" buyers who took out loans they could barely afford.

A report in the Wall Street Journal says ARM's comprised 31 percent of mortgages in the $417,001-to-$1 million range in the fourth quarter of 2013, up from 22 percent a year earlier. ARMs made up 61 percent of mortgages of more than $1 million.

More Columbia SC Mortgages Shifting to ARM's

It would seem that more and more Columbia SC mortgages are shifting to the ARM's, especially among first time homebuyers looking to get out of the rental market.

As fixed rate Columbia SC mortgages continue to increase, it is expected that more and more borrowers will look at adjustable rate mortgages to keep payments lower.

It is expected that 2014 is going to be the year of the first-time homebuyer, and keeping mortgage payments as low as possible is one driving factor that seems to be creating all the renewed interest in ARM's.

While rates on Columbia SC mortgages have continued to slowly rise over the past few weeks, they still remain affordable and many first-time buyers say they still plan to make a home purchase this year.

Get more news about Columbia SC mortgages and news that affects mortgage rates by clicking the Columbia SC Real Estate News link to your right under Columbia SC Real Estate Categories.

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