ARM vs Fixed Rate in West Virginia
With West Virginia's median home at $145,000 and conforming limit at $726,200, choosing between an ARM and a fixed-rate mortgage comes down to your time horizon and risk tolerance. West Virginia is the most affordable state for housing nationally. Remote work has brought some demand to scenic areas near the Appalachians, but broad market appreciation has been limited.
When an ARM May Make Sense in West Virginia
- You plan to sell or refinance within 5-7 years
- You're buying in a high-cost West Virginia market where even a small rate reduction meaningfully lowers payments
- Rates are at cyclical highs and expected to fall — ARM initial rates can be 0.5-1% lower than fixed
When Fixed Rates Win in West Virginia
- You plan to stay long-term (10+ years)
- Payment certainty matters more than short-term savings
- West Virginia's property taxes (0.55%, avg $726/year) add enough payment variability without adding rate risk
Closing Costs
Either product incurs similar closing costs (~$1,900 in West Virginia). Frequent refinancing to escape an ARM adds these costs repeatedly.
Frequently Asked Questions
Is an ARM or fixed mortgage better in West Virginia?
It depends on how long you plan to stay. West Virginia's median home of $145,000 with a 5/1 ARM can save on initial payments, but fixed rates offer certainty — especially important given West Virginia's property tax rate of 0.55% adds its own payment variability.
What are conforming loan limits for ARMs in West Virginia?
ARMs and fixed-rate loans both have the same conforming limit in West Virginia: $726,200. All West Virginia counties are at the standard conforming limit.
How much can I save with an ARM in West Virginia?
ARM initial rates are typically 0.5-1% below 30-year fixed rates. On a $116,000 loan (20% down on West Virginia's median home), that's roughly $100-200/month in savings during the initial period.
What are closing costs for a mortgage in West Virginia?
West Virginia has minimal transfer taxes. Overall closing costs are among the lowest in the nation. Budget approximately $1,900 in total closing costs for either an ARM or fixed-rate mortgage in West Virginia.