New mortgage loan products offer a more complex selection of terms. Lenders now offer mortgages that are blends of short-term ARMs and 30-year fixed-rate loans with a lower fixed-rate of interest for a period of five, seven or ten years. Be sure that you understand what happens at the end of the initial term before you sign on the dotted line for such a loan.

Many of these loans revert to a 1-year adjustable rate loan at the end of the initial term and can be adjusted once a year based on an index tied to the cost of money. You should know how much over the index your rate will be set and the limit or cap on how much your payments can increase. A "balloon" note requires the entire balance to be paid to the lender after the initial period of the loan ends. Most of these loans require the lender to guarantee to refinance the note at that point if payments have been timely. The lender should spell out how the re-finance rate will be determined and what costs will be involved. These loans can help you buy a more expensive house than you could afford with a 30-year fixed rate mortgage, but be sure that you understand the terms and the potential risks.

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Sherri Melton
Keller Williams Realty Augusta Partners
3633 Wheeler Rd., Ste. 125
Augusta, GA 30909
706-495-1135
Fax: 706-364-1963
SherriMelton@NUMBER1EXPERT.com

Melton and Associates are dedicated to accomplishing their clients goals of purchasing and selling property. You will find their high energy level, integrity, and driven work ethic are second to none. A stickler for high standards, exceptional service and a reputation for results, you will feel very comfortable with Sherri and Gary Melton. Sherri is also an Accredited Staging Professional Agent. She offers this service to all sellers because a Staged home gives you the competitive edge you need in today's market! Sherri Melton is ranked as one of the top producing real estate agents in the United States. She also serves on the Associate Leadership Council as Culture Chair for Keller Williams Realty Augusta Partners. Melton and Associates has been awarded Top Sales Group and the Triple Gold Medal from Keller Williams Realty Augusta Partners for 2012. Licensed in the states of Georgia and South Carolina, Melton and Associates provide the highest level of service to their clients. Sherri and Gary are known for their innovative approach to marketing homes, the personal attention they give to buyers as well as total commitment to providing excellence in real estate services.

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