According to a recent study conducted by the National Association of Realtors, most homebuyers expect to live in their homes for at least 14 years. However, the reality is that most people only live in their homes for an average time of 9 years. Click here to view an infographic from the study.
Interestingly enough, this means that the average homebuyer with a $200,000 mortgage loses at least $6,000 over the average 9-year holding period by choosing a fixed rate mortgage vs. a seven-year adjustable rate mortgage (ARM). That’s assuming the worst-case scenario happens and the ARM goes up to its maximum interest rate in years 8 and 9.
Contact me for further information or if you’d like me to run some numbers for your specific scenario.