ARMs - ADJUSTABLE RATE MORTGAGESMAY BE YOUR BEST OPTION IN A RISING RATE ENVIRONMENT
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FIXED RATE ARMS
The rate is fixed for the term of the loan then becomes an adjustable…..i.e. 5/1 ARM – Fixed rate for 5 years then an adjustable for the next 25 years. It’s amortized over 30 years.
WHY A FIXED RATE ARMS
A way to keep rates low in a rising rate environment is by getting a fixed rate ARM
Fixed rate ARMs have the best rates
In a rising rate environment get amazing rates with fixed rate ARMs