The average American is only in their
mortgage loan for approximately 5 years. Combined with a
necessity for many consumers to cash out the equity of their
home, remove mortgage insurance or a variety of reasons, the
30-year fixed rate products cannot compare with keeping
payments low and the many options available with an
Adjustable Rate Mortgage. Some consumers buying their first
or second home and planning on moving within a specified
number of years should look into the many Adjustable Rate
products available. Many of these products also have an
interest only payment.
When evaluating an adjustable rate
mortgage versus a traditional fixed mortgage, you should
figure out how many years your loan will be fixed, how much
money you will save compared to a traditional adjustable
rate mortgage and how many years after the fixed period ends
will those savings carry you, before the traditional
mortgage may have been the better choice.
For example, if you will save $30,000
over the next 5 years on a 5/1 adjustable rate mortgage
refinance loan, and let's presume that after the fixed
period, the mortgage rises the maximum 2% per year, you
might find that you can actually go 6.5 or 7.5 years on the
adjustable rate mortgage before the savings are depleted and
the regular fixed rate product was a better choice.
Adjustable Rate Mortgage loans result in substantial savings
for people looking to refinance and are some of the most
popular loans with borrowers today.
 1 Month
1 Year MTA Smart Choice Loan
3/1 ARM
5/1 ARM
7/1 ARM
10/1 ARM
Jumbo ARM
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