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When buying a home – you’re bound to have many questions.For example, “In what area can I find a home that suits my needs?

If you appear desperate or overly enthusiastic, the seller then has the stronger bargaining position.

Generally, the interest rate when you take out your loan will be lower than a fixed-rate mortgage.

Please note that this is true initially, not necessarily long-term.

Typically, ARM interest rates are tied to a specific financial index (such as Certificate of Deposit index, Treasury or T-Bill rate, Cost of Funds-Indexed Arms or COFi, or LIBOR [London Interbank Offered Rate]) and your payment will be based on the index your lender uses plus a margin, generally of two to three points.

Get the formula used by your lender in writing and make sure you understand what it means.

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