Question: My 78 year old mother wants to purchase a beach condo to live in for 2-4 years. After that, she will move in with me. With limited monthly funds, should she consider an ARM to bring down her payments?

Answer:
I understand that some people either prefer to own, or prefer to live in a home that is not generally available for rent. In fact, there are some Condo Associations that do not even allow rentals.

If you decide that, owning is the option for you (and mom), you can indeed dramatically decrease the monthly payment by using an ARM. However, with the likely pressure on rates in the future, you will want to make sure the initial period of the ARM is more than adequate for the time your plan to either own the home, or, are prepared to pay off the Mortgage Loan.

But, please consider the advice you’ve received about renting, if indeed monthly funds are limited, a rate adjustment could be devastating.

Question:  We are changing jobs and will be moving half way across the U.S. We are trying to purchase a home without being contingent upon the sale of our existing home. We then will use the proceeds of the sale of our current home to put into the mortgage somehow. So, is there an option to do an 80/20 primary secondary (the proceeds of our sale should about cover the secondary)? Or, are there any 100% ARMs out there that I could get, and then refinance to conventional upon the sale of our home?

Answer:
We will offer an 80% 1st mortgage on your new home, and the remaining percentage secured by your existing home.