Posts

Beat the Summer Heat in Reno-Sparks-David Morris Group-Things to do around Reno-things to do around Sparks-things to do in Nevada

Beat the Summer Heat in Reno-Sparks

Beat the Summer Heat in Reno-Sparks-David Morris Group-Things to do around Reno-things to do around Sparks-things to do in Nevada

Reno packs some serious summer heat but also provides some of the best and most beautiful places to cool off!  From Kayaking to water parks, we have plenty of cool activities to explore. Here are a few ways to beat the summer heat in Reno-Sparks:

KAYAKING

The Truckee River Whitewater Park is in the heart of downtown Reno.  This 2,600-foot-long park has class 2 and 3 rapids for kayakers, canoes, and boats.  Whether you’re a novice or new to the sport, kayak lessons and clinics are offered by Sierra Adventures.  

PADDLEBOARDING

Stand-up paddle boarding (SUP) is one of the fastest-growing watersports. The Sparks Marina is an excellent location in Reno, and if you’re looking for more action, the Truckee River is a must! Lakeshore is based in Reno and has turned into a premier paddleboard spot. You can rent a paddleboard at Marina PaddleFit, and they offer clinics to learn new SUP skills.  

TRUCKEE RIVER RAFTING

Reno is a perfect place for whitewater enthusiasts. It’s close to the Truckee and the Carson River, both of which have fantastic whitewater options.  The Truckee River delivers some wilder rapids with classes 3 & 4 if you’re down for a hair-raising adventure, while the Carson River is known for its milder rapids.  The most popular route down the Carson River is a 21-mile stretch called “Hangman’s Run.”  Tahoe Whitewater Tours and Sierra Adventures offer excellent guided tours down the rivers. 

FLOAT ABOUT

Truckee River rafting is right in the heart of the city, with easy access through Wingfield Park. The park is the endpoint for most float trips, and you can find plenty of places to launch your raft. Popular launching points include Crissie Caughlin Park, Dorostkar Park, and Mayberry Park. If you’re looking for something less extreme, floating the day away is a great way to enjoy the river without rapids. 

RENO-SPARKS’ WATER PARK

Wild Island Family Adventure Park offers summer fun for everyone!  With water slides, a wave pool, go-karts, mini-golf, and bowling, it’s a great way to wear out the kiddos and have a little fun yourself.   


We haven’t forgotten about fun in the sun at Lake Tahoe ~ Keep an eye out for our next blog to get the latest on the lake’s summer options!  

To stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno-Sparks real estate market, contact the David Morris Group. We’re always happy to be your helpful guide. Give us a call at (775) 828-3292.

 

 

David Morris Group - The Reality of Real Estate_ Market Update - Best Reno Real Estate Broker - Best Reno Realtor - Reno Homes - Reno Real Estate

Market Update

 

America’s housing market has undergone some wild swings over the last two years, but it appears to be settling down a bit.  According to Realtor.com®, the number of real estate listings rose by 18.7% this June compared with a year earlier.  That marks the second consecutive month of growth and the fastest rise in inventory since July 2017.  Of course, this new record growth has a long way to go before the nation’s housing inventory is back to its level before COVID, but it’s still a good sign.  

 

The recent numbers correlate with the recent hikes in mortgage rates.  Homes are beginning to remain on the market longer as buyers are being pushed out because they can no longer afford to buy.  However, new data released by Freddie Mac on June 30th shows a pause in the mortgage rate increase.  As a matter of fact, 30-year fixed rate mortgage rates have already begun dropping slightly.  “The rapid rise in mortgage rates has finally paused,” Sam Khater, chief economist at Freddie Mac, said in a press release, “largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession.”  This pause will help the market rebalance itself and bring homes back to a more “normal” pace of appreciation.

 

What does that mean for sellers? List now or forever hold your peace! If you’re on the fence about getting your home on the market, now is a great time to get it sold. If you wait, you may have to settle for price reductions and more days on the market.

 

What does this mean for buyers?  Negotiations are back!  Sellers no longer have forty showings in one weekend, and concessions are back in play.  Buyers have more time to make the right decisions and more options from which to choose.

 

The market is excellent for buyers AND sellers right now, and we are here to help!  Contact the David Morris Group if you have questions about the Reno real estate market and surrounding areas.  We’re happy to guide you through the listing or buying process as the market shifts! Give us a call at (775) 828-3292.

 

 

Common Homebuyer Regrets-David Morris Group-Reno-Sparks-Nevada-Houses in Reno-Houses in Sparks-Real Estate in Northern Nevada

Common Homebuyer Regrets

A home-buying experience can feel rushed and frantic. Add in rising mortgage rates, low inventory, and bidding wars, and the home-buying process is downright chaotic! For some, buyer’s remorse can creep in once they rush to buy and then begin to notice little things about their new home that they didn’t see before. According to a Zillow survey, 75% of recent homebuyers have at least one regret about their new home. Here are the most common home-buying regrets. 

 

Missing the Bigger Picture

We are still in a seller’s market, meaning there are still more buyers than inventory.  This shortage has caused buyers to feel pressured to grab the first home they can find rather than weighing their options more carefully.  Fewer homes to choose from, coupled with competition from other hungry buyers, causes pressure.  That pressure can cause buyers to miss the big picture. Not fully understanding a new home’s impact on daily life is the most common regret new homebuyers report.   Buyers need to anticipate what life will be like in their new home one to five years down the road rather than what their lives are like at the time of purchase.  Make sure the home fits the lifestyle you foresee, not the one you’re currently living.  

The Importance of Location

Location is one of the most important factors when purchasing a new home. Buyers need to weigh the pros and cons of the neighborhood and community.  The area needs to complement how you live, work, and play.   Spending twenty minutes inside a property in the middle of the afternoon is only a fraction of the picture.  Is there a time of high traffic that contradicts your work schedule?  Are you near a school that will have speed limit restrictions and bumper-to-bumper car-line each day?  The function and flow of the area are things to consider before signing on the dotted line.

Waiving a Home Inspection

A home inspection is an integral part of the home buying process. It lets you know what’s behind the freshly painted walls. In this competitive housing market, buyers look for ways to make their offers the most attractive, and several have waived the home inspection contingency. DO NOT do this!  There could be hidden problems that lead to hidden expenses, and the only way to know that is with an inspection!  

 

Aesthetics over Functionality

Aesthetics can sometimes distract buyers. The interior of a home on the market is cleaner than usual if not staged to look better.  Buyers need to focus on the whole house and think about whether it will suit their lifestyle for years to come, not just today.  If a newly renovated kitchen is still too small to meet your needs, you will regret it down the line, regardless of the new backsplash.  Focus on things you cannot change, like size, location, views, and the actual bones of the home rather than a new farmhouse sink.  

Maintenance Costs

Many buyers regret that they didn’t consider annual costs such as HOA fees, property taxes, and insurance fees before purchasing their home. These fees typically increase yearly, and if you’re barely scraping by in the first year, imagine five years down the line.  Unexpected maintenance expenses such as plumbing, HVAC, a leaky roof, etc., are all things the home inspection report should outline, and they should be factored in as maintenance costs for the future if they don’t need to be repaired right away. 

 

Buyers who know about these often overlooked factors understand what to look for and feel more secure about their purchase. Setting your priorities before buying will help you feel more confident about your home purchase down the line.

 

 

The History of Father's Day-David Morris Group-Reno Real Estate-Reno Homes-Sparks Real Estate-Sparks Homes

History of Father’s Day

The History of Father's Day-David Morris Group-Reno Real Estate-Sparks Real Estate-Homes in Reno-Homes in Sparks

Father’s Day is this weekend.  It’s the official day to honor wonderful dads and father figures and celebrate the men who put in the work to make us feel protected and safe.  Have you ever been curious about the origins of this holiday?  Or do you need some new trivia to ‘wow’ your dad when you see him?  Here are a few fun facts about the history of Father’s Day.

First Recognition

The first event to celebrate fathers was on July 5, 1908, in Fairmont, West Virginia. A year before this celebration, a horrifying mining explosion occurred in a nearby town, known as the Monongah Mining Disaster.  It killed 362 miners, 250 of which were fathers.  A woman by the name of Grace Clayton encouraged her pastor to hold a service to honor the children who lost their fathers.  She chose that specific date because her father had passed away years prior, and July 5th was close to his birthday.  

While this was technically the first recognition of the paternal bond of fatherhood, it didn’t directly encourage the creation of Father’s Day. The town only promoted the memorial service in Fairmont, WV, which was overshadowed by July 4th celebrations.

Official Celebration

The idea of having a day to celebrate fathers was picked up again two years later by a woman from Spokane, Washington named Sonora Dodd.  Sonora and her five brothers and sisters were raised by their father after their mother passed away, and she felt that fathers deserved equal recognition as mothers.  She worked with her local church and YMCA to plan a day specifically to celebrate the men of the house.  As a result, an official “Father’s Day” was held at the Spokane YMCA on June 19, 1910.  Soon after, several cities and towns across the country followed suit. 

Presidential Recognition

In 1966 President Lyndon Johnson issued a presidential proclamation that fathers would be honored each year on the third Sunday in June.  President Richard Nixon signed the proclamation into law six years later and Father’s Day became recognized as a national holiday.

Commercialization

Today, as with Mother’s Day, Valentine’s Day, Siblings Day, Yoga Day, and any other celebratory reason you can think of, retailers begin their promotions for profit months in advance.  The greeting card companies are pretty fond of the holiday as well.  

Global Celebrations

Great Britain was the first area abroad to begin the annual celebration of Dad.  It’s thought that they adopted the tradition right after WWII in 1945.

 

France was next to join in the celebration of le pére in 1949.  However, the idea of profit from the holiday spurred Father’s Day more so than the idea of celebrating dear old Dad.  As a matter of fact, a lighter manufacturer called Flaminaire brought the tradition to France with the slogan: “Nos papas nous l’ont dit, pour la fête des pères, ils désirent tous un Flaminaire” translated to say “Our fathers told us, for father’s day, they all want a Flaminaire.”  It wasn’t adopted as an official decree across the country until three years after the Flaminaire promotion.

 

Other countries recognizing Father’s Day on the third Sunday in June include Mexico, Ireland, France, Greece, China, and Japan.

 

Father’s Day is called Vatertag in Germany, or Männertag, which means “men’s day.” The German celebration of der Vater falls on the Thursday 40 days after Easter. It is traditional for groups of men to go into the woods with a wagon of booze and meats in certain regions.  Which is quite a bit different than spending the day being gifted with silly ties and handmade crafts, but to each his own!

 

No matter when it’s celebrated, what the traditions are, or what it’s called, the father figures in our lives deserve recognition for the role they embrace.  We wish all of the Pops out there a very Happy Father’s Day, and we hope you are appreciated for all that you do!


If you have questions about the Reno real estate market, we are happy to help!  Contact the David Morris Group, or call us at (775) 828-3292.

 

 

Decoding Deceleration-David Morris Group-Realities of Real Estate-Sparks Real Estate-Reno Real Estate

Decoding Deceleration

Decoding Deceleration-David Morris Group-Reality of Real Estate-Reno Real Estate-Sparks Real EstateRecent news articles on Fortune.com have centered around the decline in housing prices. Economists agree that housing prices will continue to decline in particular regions over the next 12 months.  However, it’s essential to distinguish between a “price correction” and “deceleration.”   What we are seeing is a deceleration.  Deceleration means prices are rising at a more modest rate. It does not mean home values are dropping. Everything is still on an upward trajectory, just not as fast as we have seen over the past year.  

 

The U.S. housing market has slowed down slightly due to increased mortgage rates. Mortgage applications are showing a decline, and fewer listings are getting multiple offers as a result.  These factors are causing housing inventory levels to rise, which can be considered good news in several markets.  

 

Moody’s Analytics chief economist Mark Zandi calls this a “trajectory flip.”  Meaning that demand is pulling back in the face of higher mortgage rates, but the housing market remains steady.  Prices may be going down, but not at an alarming rate, which means home valuations remain healthy. 

 

The memories of the 2008 crash are still painful. However, Zandi says this market shift’s circumstances are different from the 2008 housing crisis. While the spike in mortgage rates has priced some folks out of the market, most homeowners are financially better off than they were leading up to the 2008 debacle.  This shift is at the hands of the Federal Reserve rather than banks.  Meaning that if nationwide home prices do begin to plummet, the Fed has the ability to ease up on mortgage rates and correct the dive.  

 

Deceleration is not a bad word.  Our market is not going down. The market needs to cool so that inventory can stabilize. Multiple offers and bidding wars are not normal market conditions. Buyers and sellers need a team with the wisdom and experience to navigate any market under any circumstance! 

 

We are here for you, and we know what it takes to protect you in any market.  If you would like to talk more about the changing market and what it means for you, we’re happy to help.  Contact the David Morris Group or call us at (775) 828-3292, and we’ll guide you every step of the way.

 

 

Industry Partner Spotlight-David Morris Group-Reno Real Estate-Sparks Real Estate

Industry Partner Spotlight

Industry Partner Spotlight-David Morris Group-Reno Real Estate-Sparks Real Estate

Several players are involved in buying or selling a home.  As your REALTOR®, we will guide you through every step of the process, but we rely on our industry partners to help us get the job done. We’d like to recognize Mortgage Lenders in our Industry Partner Spotlight.

What Does a Mortgage Lender Do?

Lenders assist buyers with the application procedures to qualify for a home loan. The lender will pre-qualify the buyer for the money they are financially qualified to borrow. In today’s market, buyers need to be prepared to show their pre-qualification letter when they make an offer to purchase.

How Do I Find a Mortgage Lender?

There are several ways to find a mortgage lender, but finding the right one matters most.  Buyers can go online, go through a mortgage broker, or ask their local bank or credit union for a home loan.  Most REALTORS® work with preferred lenders and can provide a list for you.

Is a Mortgage Lender a Bank?

It can be a bank, but it doesn’t have to be. Credit unions, non-bank lenders, and online companies have the ability to offer mortgage loans. There are many options to compare and consider.  Finding the best option that fits your financial needs is the goal.

How Many Lenders Should I Contact?

A good rule of thumb is to apply with at least three.  The rule of three allows you to get a solid idea of the bigger picture and find the best option for your financial situation.

What Questions Should I Ask?

  • What type of loan do you qualify for?  There are several types of loans.  The loan you are eligible for will determine your down payment, the loan terms, financial qualifications, and more. 
  • What is the APR?  
  • Will rate locks be available? If so, what are the fees?  
  • Ask about mortgage insurance.  
  • Ask for a detailed estimate of your total expenses and additional fees over the life of the loan.

Is it Better to Go Through a Broker?

A Broker is not a lender.  They collect your financial information, then shop and compare lenders on your behalf.  Brokers make the selection process easier and smoother for homebuyers.  They typically have a higher chance of finding the best options since they are familiar with the industry.  


We’d like to recognize and thank the professionals that we work with:


If you have questions about the Reno-Sparks real estate market, financing, buying, or listing a home, contact the David Morris Group. We’re happy to be your guide. Give us a call at (775) 828-3292.

 

 

Most Unexpected Housing Costs

Most Unexpected Housing Costs-Homeowner Expenses-David Morris Group-Reno-Sparks Real Estate

It is no secret that the current market is a Seller’s Market. Bidding wars have become the norm, and homebuyers have stretched their budgets to the limit. In a recent survey conducted by Consumer Affairs, homebuyers reported spending an average of $10,334 over what they initially budgeted. Going over budget has left new homeowners unprepared for the most unexpected housing costs.  

Property Taxes

This year, property taxes were the most unexpected housing costs for new home buyers. The spike in housing prices has increased property value, which has caused an increase in property taxes. 

Utilities

With 26% of those surveyed saying they hadn’t budgeted enough for their utilities, this bill came second as the most unexpected housing cost for new homeowners.

Maintenance & Repairs

The recent market has not been favorable of contingencies in offers to purchase, allowing sellers to decline repair requests.  New buyers have been left to fend for themselves to repair items that due diligence would have handled in a less competitive market. 

HOA Fees

While HOA fees were an expense on the survey, they weren’t necessarily unexpected.  Still, 7% of homeowners surveyed said they are among the most expensive costs of owning a home.

Landscaping

First-time home-buyers who have rented since leaving their childhood homes were reported to be caught off guard by the expense of landscaping and yard maintenance.

 

While costs are rising for homeownership, Americans still want to buy.  Those surveyed said that owning a home made them feel proud, independent, and satisfied despite the financial strain.

 

If you need help creating a financial plan to buy a home this year, we are happy to help!  Contact the David Morris Group.  Or give us a call at (775) 828-3292. 

 

 

The Murals of Reno-David Morris Group-Real Estate-reno homes-sparks homes

The Murals of Reno

Reno’s Downtown and Midtown Districts are home to more than 100 larger-than-life murals painted by local, national, and international artists. These murals add color and vibrance to Reno’s urban landscapes as they tell their stories. The art ranges from topics as serious as racism or as whimsical as flowers, either commissioned by a local business or simply the product of an artist’s inspiration. Some portray historical figures, old friends, departed companions, legends, or lost loves. New designs appear on brick, plaster, wood, and concrete surfaces, and sometimes murals that once were visible get surrounded by new buildings or become hidden. The transient nature of these murals matches that of Midtown, as it is always fluid and changing. 

 

The Murals of Reno-David Morris Group-Reno Lifestyle-Midtown District Reno

Just south of downtown Reno, the Midtown District is a less than five square-mile section of town that has undergone a remarkable transformation over the past decade. Rather than demolishing the old brick buildings and forgetting about this unused section in the city, an ambitious collection of artists and small business owners took over and created a neighborhood with an artisan approach. They turned the district into a unique cultural experience with top-tier shopping, dining, and a vibrant array of spectacular murals that other metro areas simply don’t have.  

 

It wasn’t until Geralda Miller and Eric Brooks that the Midtown murals became so well known. According to Eric, the murals of Midtown are considered to be the most extensive collection of public art per capita in the entire country. As Miller explains it, “Murals are a way for every man to see art. It’s that grassroots arts movement for those who may not want to go to a museum or an art gallery.”  

The Murals of Reno-David Morris Group-Reno Lifestyle-Midtown District Reno

Geralda and Eric founded Art Spot Reno to develop a way to showcase the city’s murals, and Eric began giving mural tours to friends for fun. Soon, folks started coming in from all directions to catch a glimpse of the art, so Geralda and Eric created the Midtown Mural Tour. The tour is now offered twice a month, and Eric continues to proudly guide visits through Midtown with his encyclopedic knowledge of the works and the artists. The mural tours have been organized into two distinct paths – the Midtown Mural Tour and the Downtown Reno Mural and Public Art Tour.

Midtown Murals

While many of Midtown’s murals are visible from main streets, several are tucked in alleyways and hidden in unlikely spots. Tours are taken at a leisurely pace over roughly two hours, and knowledgeable guides provide stories and insight that make the art even more enjoyable. Every month, the Midtown Mural Tour alternates between a north route and a south route, as there are too many pieces in just this neighborhood to be seen in a single afternoon.

Downtown Reno Mural and Public Art Tour

Like Midtown, the city center contains many murals from highly respected local, national and international artists. The murals are also done in various styles, including graffiti lettering, illustration, landscapes, and realism portraits. During Artown, an annual arts-themed festival, Circus Circus Reno holds a Mural Marathon Competition where qualifying artists paint an original 14-foot-high by 20-foot-wide mural on the side of the Hotel & Casino in just 24 hours.

The Murals of Reno-David Morris Group-Reno Lifestyle-Midtown District Reno

 

The murals throughout Reno truly celebrate creativity, and they evoke emotions within every person who views them. This open-air art is a visual language of the city, and to catch a glimpse of it – all you have to do is take a walk!


To stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno real estate market, contact the David Morris Group or give us a call at (775) 828-3292.  

We’re happy to be your guide to The Biggest Little City in the World!

 

 

Best Restaurants in Reno-David Morris Group-Real Estate-reno homes-sparks homes

Best Restaurants in Reno

Best Restaurants in Reno-David Morris Group-Real Estate-reno homes-sparks homes

From perfect steaks to fresh seafood to gourmet soups, Reno has a delicious dining scene.  With Mother’s Day on the horizon, here are a few of the best restaurants in Reno so you can treat the Family CEO to a lovely brunch or dinner!  

Atlantis Steakhouse

Experience the attention to detail and art of unsurpassed service at this award-winning fine dining steakhouse.  Set in a glitzy, casino-based setting, Atlantis Steakhouse is considered one of the best dinner spots in Reno.

Atlantis Sky Terrace Sushi & Oyster Bar

This sushi bar offers a selection of over 50 types of nigiri and maki sushi. The scenic Sky Terrace offers a unique dining experience under the sea! 

Bimini Steakhouse

This tropical-inspired steakhouse is located in the Peppermill resort and has quite the dining room!  With savory, wood-grilled meats, fresh, delicate fish, enticing small plates, and magnificent desserts to choose from, Bimini Steakhouse will not disappoint!  

Beaujolais Bistro

This charming French cafe celebrates authentic French cuisine and French-style cocktails and is one of the most popular restaurants in the Arts District of downtown Reno.

Fourk Kitchen

Experience the best lunch in Reno at Fourk Kitchen.  This formal four-course dining experience with a casual vibe serves a “prix-fixe” menu that changes with the seasons.

Great Full Gardens Cafe and Eatery

The Great Full Gardens Cafe & Eatery in MidTown Reno is a casual restaurant that serves items from local farms and its own greenhouse.  While their menu caters to vegan, gluten-free, and Paleo diets, there are plenty of delicious options for the whole family!  

The Grill At Quail Corners

The Grill at Quail Corners offers an upscale-casual vibe with a stunning view. This restaurant offers a bright atmosphere and courtyard seating to enjoy the surrounding landscape and mountains.

La Strada

Located at the Eldorado Resort Casino, La Strada was voted one of America’s top ten Italian restaurants.  

Laughing Planet Cafe

Laughing Planet Cafe brings healthful, organic, and sustainable food to the Midtown Reno area.  With a philosophy that one doesn’t have to sacrifice taste to eat healthily, this charming cafe is one of the coolest local restaurants.

Peg’s Glorified Ham n Eggs

This family-owned and operated diner serves up comforting American breakfast and lunch.  The charming restaurant offers some of the best egg dishes and sandwiches in Reno.

Squeeze In

The fun and eclectic vibe at Squeeze In is matched by its extensive menu and giant omelets prepared in various ways.  They specialize in breakfast and lunch and offer the best bloody marys and mimosas!

Toucan Charlie’s Buffet & Grille

Toucan Charlie’s Buffet offers a champagne brunch and a buffet like no other!  With eight live-action stations, including Sauté & Grille, Charcuterie, Far East fare, Pho, Seafood, Southwest, Specialty Salads, and Carving stations, you’d better bring your appetite!

Von Bismarck

With two patios and an outside grill, this modern family-style restaurant takes authenticity and tradition seriously with its German and Eastern European cuisine.


If you’d like to stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno real estate market, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

 

 

David Morris Group Blog-Reno Real Estate-Sparks Real Estate-buying a home-selling a home-real estate market-real estate professional

Fixed-Rate or Adjustable-Rate Mortgage

Fixed-Rate or Adjustable-Rate Mortgage-David Morris Group-Reno-Sparks Real Estate-Home Buyer Tips

When shopping for a home loan, the first step is determining which loan type best suits your needs: a fixed-rate or adjustable-rate mortgage.

Fixed-Rate Mortgage

A fixed-rate mortgage remains unchanged throughout the life of the loan by charging a set interest rate. The payments will be the same each month which makes budgeting easier.  A buyer can choose either a 15-year term or a 30-year term.  The term is the time it will take to pay off the loan.  A shorter-term mortgage will have a lower interest rate at a higher monthly payment.  The payment is higher because the borrower must repay the principal amount of the loan in less time. The main advantage of a fixed-rate loan is that the borrower is protected if interest rates rise over the life of the loan.  The downside is that when interest rates are high, the payments are less affordable, making it more challenging to qualify for a loan.  Another downside is that borrowers are locked into their interest rate if interest rates drop.  The homeowner will have to refinance their existing loan to take advantage of lower interest rates, which can be a cumbersome process.

Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage will change over the life of the loan based on market interest rates.  Initial interest on an adjustable-rate mortgage (ARM) is set below the market rate for a fixed time.   The fixed period could be anywhere from one month to seven years.  Once the fixed period ends, the loan will reset to a new interest rate based on current market rates.  When the loan resets, the homeowner’s monthly payments could increase or decrease, and they will be locked in until the next reset.  

Low initial payments could enable the borrower to qualify for a larger loan.  If market rates drop, the borrower will have lower monthly payments due to lower interest.  However, if market rates go up, so does the monthly payment.  An adjustable-rate mortgage may be a good choice if you know you’re going to move within a short period and won’t live in the home long enough for the term to change.

Adjustable-rate mortgages are not as straightforward as fixed-rate mortgages. Before jumping in, ask the following questions:

  • How soon will the payment change?
  • How frequently will the interest rate adjust?
  • Is there a cap on how high the interest rate could go?
  • Is there a limit on how low the interest rate could go?
  • What direction are interest rates heading today, and will that trend continue?

When choosing a mortgage, you need to consider the economic realities of an ever-changing market.  If interest rates are high and expected to fall, an adjustable mortgage will take advantage of the drop. However, if interest rates are low, run the numbers to determine the worst-case scenario.  If a predictable monthly payment is important to you, a fixed-rate mortgage may be the way to go.  If you are not sure which mortgage is right for you, your mortgage broker will be able to help.


If you would like some more information about buying a home, or if you’re looking for a great REALTOR® to show you around the Reno-Sparks area, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.