Adjustable-rate mortgages increasing

As buyer demand increases and inventory remains low, many first-time home shoppers are getting creative as they find their budgets stretched. Some are putting less money down while others are choosing adjustable-rate mortgages in an all-out effort to win the inevitable bidding war. Many realize that they’re not going to be in that particular house for 30 years and it makes sense to at least enter the game at a price they can afford.

Other strategies include lower down payments – Freddie Mac has recently launched a three-percent down option as well as “nonprime” loans which are an outgrowth of the infamous subprime mortgages.

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