Should You Refinance Your ARM, Or Let It Adjust Lower?
October 6th, 2010 categories: Adjustable Rate Mortgages
If your adjustable rate mortgage is due to adjust this year, don’t go rushing to replace it just yet. Your soon-to-adjust mortgage rate may actually go lower. It’s related to the math behind the ARM.
Conventional, adjustable-rate mortgages share a common life cycle:
- There’s a “starter period” in which the interest rate remains fixed
- There’s an initial adjustment period after the starter period called the “first adjustment”
- There’s a subsequent annual adjustment until the loan’s term expires — usually at Year 30.
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Don’t Rush To Refinance That ARM — It May Be Adjusting To 3 Percent Or Lower
March 11th, 2010 categories: Adjustable Rate Mortgages, Buyers, Mortgage Rates
If your mortgage is set to adjust this year, the smart move may be to let it. Today’s conforming mortgages are adjusting lower than ever before — as low as 3 percent. It may not be what you expected when you signed for your ARM several years ago.
The reason why ARMs are adjusting lower is because of how they’re made.
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