What to Do if You’re Considering an Adjustable-Rate Mortgage
AuthorReal Estate Experts. Date:
If you’re considering an adjustable-rate mortgage (ARM), it’s important to understand how they work and what the risks are. Unlike a fixed-rate mortgage, where the interest rate stays the same for the life of the loan, an ARM has an interest rate that changes periodically. The initial interest rate is usually lower than a fixed-rate mortgage, but it can go up – sometimes by a lot – eventually. There are a number of things to consider before you decide whether an ARM makes sense for you. In this article, we’re going to examine the pros and cons of ARM home loans, how they work, and when they might be a good option for borrowers. Why is it Called an Adjustable-Rate? The first thing to understand about an ARM is that there are two interest rates: the initial rate and the fully-indexed rate. The initial rate is usually lower than the … Continued
The post What to Do if You’re Considering an Adjustable-Rate Mortgage appeared first on FastExpert.
Categories
Recent Posts
