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Contact Information

Donna Hermsen
Bunbury & Associates Realtors
6650 University Ave
Middleton, WI 53562
Phone: 608 770-1140
Email: DonnaHerms@aol.com

Testimonials

Dear Mr Bunbury, As a former owner of a company we know valuable employees are to your success. This is why we are writing to express our complete satisfaction with Donna Hermsen. A little background on the history of our home at 7809 Cobblestone Circle, Middleton. The house had been on the market for one full year, we had vacated athe house on November 1 and moved to S.C. When it was time to to list again, with a 3rd agent, in January, I spent considerable time on the internet trying to find a new agent. I was impressed with Donna's bio and called her to take a look at the house. Our two sons were in the process of installing some updated light fixtures and were at the house when Donna & Dan looked at it. We also had another agent/team from another agency look at the house while our sons were there. After talking to Donna and the other agent, and asking our sons for their opinion of which agent to list with, it was unanimous that Donna was the choice. I was very anxious listing with anyone, and not meeting them and being so far away (S.C.) from the property. Donna was fantastic, she kept us informed of every showing, she followed up with each possible interested party and her negotiations with the selling agent were very professional. The closing couldn't have gone smoother. All paperwork was done via email, and she was prompt and excellent in any answers to questions we had. I will recommend her to anyone I know back in Middleton/Madison area that is thinking of selling or buying a home. Sincerely, Gloria Kuehn Testimonial Gloria Kuehn
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Adjustable Rate Mortgages - The PROS & CONS

Now that you know what an ARM is and how it works, you may be wondering what the advantages and disadvantages are. So let’s explore that issue.

Offering adjustable rates allows lenders to transfer part of the interest rate risk from themselves to the borrower. If you get a fixed rate mortgage and the interest rate then goes up, it costs the lender money. However, if you have an adjustable rate mortgage, as the interest rate goes up, so does your payment, thus compensating the lender. Adjustable rate mortgages are particularly useful when unpredictable interest rates make fixed rate loans hard to get.

One of the main advantages of an adjustable rate mortgage is that the initial interest rate is lower than that of a fixed rate mortgage. A lower rate means lower payments, which may help you qualify for a larger loan. This is an important detail if you expect your future earnings to rise. In this case, the ARM will allow you to qualify for a larger loan amount earlier rather than later.

However, this information should only be used with care. If you use an ARM to qualify for a larger loan amount than a fixed rate would allow you and the interest rate then rises drastically or your income doesn’t rise, you may not be able to afford the larger monthly payments, thus causing you to default on your loan.

A situation in which an adjustable rate mortgage makes sense would be if you are only going to keep the house for a short period of time. If you are only planning to own your house for only a few years, the risk of the interest rate rising goes down. This means that you will get a better rate with an ARM, making it a good choice. However, if you plan on staying in your home for a long period of time, a fixed rate may be a better option.

The lesson here is to have a plan. Know what your goals are in purchasing a home and plan for all eventualities. Do your research when shopping for an ARM and consider the worst-case scenario.

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