Guide to Refinance, Mortgage,
& Home Equity Loans in
Stamford, Connecticut (CT)

Stamford, CT is located in one the top five richest counties in the country. Its population is rapidly growing because of an influx of new jobs. The short commuting distance to New York City is highly convenient for many workers and it is even considered part of the New York metropolitan area.

Stamford has a cluster of corporate headquarters located in the city, including four Fortune 500 Companies, nine Fortune 1000 Companies, thirteen Courant 100 Companies, numerous divisions of large corporations and a large number of secretive hedge funds. This gives Stamford one of the largest concentrations of corporations in the nation. Among the larger companies headquartered in Stamford are World Wrestling Entertainment, Xerox and Pitney Bowes. UBS also has a major headquarters there, boasting North America 's largest equities trading floor.

Stamford was recently recognized as the safest city with a population over 100,000 in the United States. Stamford also boasts branches of many prestigious, reputable schools such as the University of Connecticut , University of Bridgeport and Sacred Heart University . No wonder those who live there want to stay and many newcomers are looking for homes there.

Living in Stamford is a great idea, and whether you’re searching for your first mortgage or you’re looking to refinance your current Stamford home, the first step is to take a close look at your loan options.

The ARM Mortgage

The adjustable rate mortgage is becoming a popular alternative to the more traditional fixed rate mortgage loan.

An adjustable rate mortgage, or ARM, has an interest rate that is not fixed. The interest rate varies based on one or more indexes. Different lenders tie their adjustable rate to different indexes.

Some of the most common indexes are:

Treasury notes and bills.
The Federal Housing Finance Board’s National Average mortgage rate for loans that are closed.
The average interest rate paid on jumbo certificates for deposit.
The average costs of funds for the specific lender.

The ARM loan can be a very smart choice for many who can afford to accommodate fluctuating financing costs. Be alert, however, to the fact that interest rates can easily rise or fall.

These are a few advantages of the ARM.

Due to its lower adjustable interest rate, the monthly payment amount is less. This may allow you to qualify for a bigger mortgage or loan. Lenders will use your gross monthly income and monthly mortgage payment to figure out how much interest adjustment you will be able to handle.
If you intend to stay in this home for only a brief time period, such as a couple of years, an adjustable rate mortgage may be a great option. The primary benefits of an initial low interest rate will be taken advantage of during this period.
If present interest rates seem too high for you to handle, this could give you a mortgage choice worthy of consideration.
The initial rate or teaser rate that you are charged on the adjustable mortgage tends to be lower than current interest rates. This can allow you to buy a home you would not be able to get a fixed rate loan for, as your initial monthly payments will be considerably lower.

Adjustable rate loans are not one size fits all products for first mortgage or refinance buyers. Check out some of these choices.

Options ARMs offer even more flexibility for individuals who aren’t sure how much they will be able to pay each month. You get to choose each month from a fifteen year amortized payment, a thirty year amortized payment, a minimum payment, or an interest only payment. This gives you budget options every month.

Fifty-Year Loans stretch out the repayment term to make it more affordable to buy larger properties.

Interest only loans allow you to pay only the interest on the loan for the first ten years.

Of course, there are many other types of home loans available in addition to adjustable rate mortgages. If you would like more information about mortgages, home equity loans or refinancing, fill out the form below. A lender will be in touch with you ASAP to answer your home mortgage questions.

Other Connecticut (CT) Guides to Refinance, Mortgage, and Home Equity Loans in Your City or Town:

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