What To Do With A Bad Or Out-Of-Control Adjustable Rate Mortgage?

Adjustable Rate Mortgage (ARM) - Advantages / Disadvantages

Attn: Special Adjustable Rates Available Until For Residents Of  & Neighboring States!

A variable-rate mortgage or an adjustable-rate mortgage (ARM) is a mortgage loan where the interest rate is periodically adjusted based on an index which reflects the charge to the lender as far as borrowing on the open credit market.  Another thing to remember, most people have better credit than they think, usually Fair Credit or better, keep this in mind while filling out our online form.   When contacted by us, kindly ask our loan professional any question you may have.  They will be more than happy to assist you in making sure an adjustable rate mortgage is best for you.  Remember, all loans don't fit all people;  if you need a mortgage loan, we're will find the right one for you.

This type of loan can be initially provided at the lender's standard variable base rate for a certain term, i.e. 5 years.  There could be a direct link to the underlying index, but the lender can decide to increase or decrease the rate at their discretion after the initial term.   If your rate goes up substantially, you will need to refinance.

Adjustable-rate mortgages, according to HUD.gov, are usually the way to go for home owners planning to move in a certain number of years.  For example, if you plan on moving in 5 years, then get a 5-year adjustable rate loan.  The point being, you will move before the adjustable rate adjusts up.  You will save quite a bit of money in doing so.

Get Control of Your Mortgage Rate and Monthly Payment

  • Many people have used ARM's to get lower mortgage payments and also to initially qualify for their mortgage.
  • If your ARM is reaching the end of its initial rate period, i.e. 5 years, your payment could significantly increase when it re-adjusts.
  • You may want to lock into a fixed-rate mortgage, especially with today's low rates.

adjustable rate mortgages and refinance

Refinance into a Home Loan that Works Best for You

  • With low long-term interest rates, refinancing into a 15, 20, or 30 year fixed-rate mortgage can be a good financial move today.
  • If you only plan on living in your home for more than a few years, less than 5, refinancing to a new ARM may be a good idea.
  • If your budget is tight, you may want to consider an interest-only mortgage.   Monthly payments are lower and more affordable.

Popular Home Loans for People with Adjusting ARM's

  • Smart Loan (Interest Only) - Get a fixed rate for 30 years and pay only the interest when you want.
  • Fixed-Rate Mortgage: Get the security of a fixed rate for 30 years.
  • Adjustable Rate Mortgage: Refinance to a low fixed rate for another 3, 5, or 7 years.
  • Flex 100: Combine your 1st and 2nd mortgages into one loan with only a nominal fee from your own funds.

Mortgage Refinance @ 4.50% - 100k is $506/mo.

Thank you,
Peak Home Loans

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