Length of Stay

Mortgage decisions often hinge onhow long you plan to stay in thehouse. If you're likely to stay 10 years ormore, an adjustable-rate mortgage(ARM) may not be the way to go. Therate on an ARM can rise if interest ratesgo up, while rates on a fixed-rate mortgagestay the same. If you plan to movewithin a few years, however, an ARMcan make a lot of sense, especially ahybrid ARM, where the rate is fixed fora certain period of time. Hybrids comein a variety of terms, from 1 to 10 years,with the rate increasing along with thelength of the term. If you're planning tomove within 5 years, you can currentlyget a 5/1 hybrid ARM with a rate that'sabout a half point less than a 15-year,fixed-rate mortgage. Talk to a mortgagebroker for more information.