Originally Posted by
konop88
I think I'm lucky to come across this discussion
The thing is I've been researching opportunities to buy an apartment anywhere near NY and mortgages give me a lot of headache. Could you please advice about floating rates? I gather it is more risky, reading different mortgage tips
https://tranio.com/traniopedia/tips/...dden-pitfalls/ Is the idea worth it? Guess I'd like to stick to floating rate only if it is safe and worth doing
I personally would not recommend you do an adjustable rate mortgage (ARM) in the current market. That was a European article but a floating and ARM are the same thing. Rates have been rising and will keep rising but at what speed is the question? By the time your ARM adjusts you could jump from 3.125% to 5.125% and then just keep moving higher. ARMs can be a good deal if you're only going to own the apt for a few years. Here is an older article that does a good job explaining the pros and cons:
30-Year Fixed vs. 5/1 ARM | The Truth About Mortgage.com
If mortgages give you a headaches then don't turn them into migraine by doing an ARM. Just my 2 cents.
I'm not licensed in NY but I'll PM you a lender who is that has a good reputation.
Marty
Thanks Sonny!!