Do Adjustable Mortgage Rates Ever Go Down

by Kristal
(Downingtown, Pa, USA)

Do Adjustable Mortgage Rates Ever Go Down? Do adjustable mortgage rates ever adjust downward? I have known a lot of people with an ARM, including myself, but I've never heard about or experienced them going down.


My husband and I were first-time home buyers in 2005. We were recommended a real estate agent from a family member. The real estate agent recommended us to a mortgage company which prequalified us.

However, we knew nothing about mortgages at the time and the mortgage lender took advantage of us. He told us that we were to have one mortgage and that it was excellent.

When we arrived at closing we found out that we had a second mortgage. "I'm not sure of the amount but it isn't that much," he explained.

It was an extra $250 a month.

The second mortgage was fixed, but our main one had adjustable mortgage rates. We were so clueless about buying a home we didn't even know that mortgages could adjust.

Our mortgage was sold to a new company within two months and now it is at 10%. It started at 6.8% causing a $300 payment hike.

The real estate agent worked out in the sense of getting us into a home, but I would absolutely never use the same mortgage company again.

I would do everything differently next time. I wouldn't buy a house without being prequalified for a fixed mortgage instead of adjustable mortgage rates and I wouldn't close on a home without the terms being more clear.

Somehow we're managing now but all the headaches aren't worth it. I'd rather be renting.

Do Adjustable Mortgage Rates Ever Go Down and Subprime Mortgage Loans

Dear Kristal, Your story expresses the feelings of many US homeowners with adjustable mortgage rates. First of all, I'd like to commend you for avoiding mortgage foreclosure even though it has not been easy.

Because many variable rates today are subprime mortgage loans, homeowners need a long-term plan to the short-term fix. For those with subrime mortgages, don't miss this powerful cure to break free from the subprime syndrome.

Yes, Kristal, some adjustable mortgage rates go down. But few that are also subprime mortgage loans ever go down.

For your next mortgage, become a savvy mortgage shopper. Discover the 10 best kept secrets to low mortgage payments. You're already on your way to getting your best mortgage rate.

Best Wishes,


P.S. Go to my Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.

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You can also ask Kate about your mortgage at Answers to Adjustable Mortgage Rates.

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