Adjustable Mortgage Rates Advice
by Anonymous
(Unknown)
Adjustable mortgage rates had dropped about 2 percentage points from when we purchased our first house. At the time, we were looking for a way to cut our bills down because my husband wanted to go to college full-time.
So, we started researching our refinancing options. Our mortgage advisor quizzed us on what our future plans were. We planned to move after graduation, so she suggested an ARM. The ARM would not adjust for 5 years, well within our time frame. We left our security blanket of a fixed rate jumped full force into a super low ARM rate that would save us money short-term, when we needed it most.
It was some of the best advice ever received. She said most people shun ARMs because of the uncertainty of future rates, but since we were planning to live in that house short-term, it was a wise financial decision for us.
We moved within the term and more than broke even, something she had concerns about. But at the time, we needed to lower our bills and that extra $120 a month in our pockets was just what we needed to let my husband scale back his work schedule and step up his college classes.
Adjustable Mortgage Rates
Because the subprime mortgage crisis tarnished the reputation of variable rates, adjustable rate mortgages are somewhat out of style right now. The initial interest rates of an ARM are similar to a
best fixed rate mortgage. Not much guess which is a better choice today.
However like other mortgage trends, the ARM comes and goes in popularity. So don't write off the
adjustable mortgage rates. Watch for them to make a come back in future markets. When they do, it will be a great way to save money by getting your best mortgage rate!
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