Teresa knew that she wouldn’t live in Dallas forever, so she chose a mortgage that would benefit her in the short term

Traveling was always a big part of Teresa’s job, so she was relieved when she was given a five-year assignment in Dallas. She didn’t mind relocating, and she was keen to settle into a home after having virtually lived in hotel rooms for far too long. She poured her energy into finding a house, figuring that she would sort out the financing later.

Fortunately, the market was good and Teresa was able to find a house that met her, admittedly high-reaching, wish list. It had a pool for when her nieces and nephews came to visit. It also had an adorable garden. (While Teresa didn’t exactly have a green thumb, she figured that proper homeowners should grow tomatoes and such.) There were extra bedrooms, a sun-drenched office, and…as Teresa repeated all of the great features of her new house to friends and family, it slowly dawned on her that she would have to find a way to pay for all of it.

Before her first meeting with the mortgage lender that a friend had recommended, Teresa was a little bit nervous. She felt a bit foolish for having jumped into the house hunting without taking care of the financing first. Luckily, the representative was extremely friendly and knowledgeable.

Since Teresa didn’t plan to stay in Dallas after her five-year assignment expired, her mortgage lender recommended an adjustable-rate mortgage (ARM). Rates were low and it didn’t seem that they would rise significantly in the near future. After crunching some numbers, it seemed likely that an ARM would save Teresa the most money. To benefit from a fixed-rate mortgage, her representative said, Teresa would have to live in her house for at least ten years.

As it turned out, Teresa was in fact ready to move on after the five years. Her adjustable-rate mortgage served her well during her time in Dallas.