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It's A Good Time To Look At Adjustable-Rate Mortgages

According to the Freddie Mac weekly mortgage rate survey, the relative cost of a 5-year ARM is dropping versus its 30-year fixed-rate cousin.

During the first 5 months of 2009, the products ran neck-and-neck. Today, they're a half-percent apart.

On a $200,000 home loan, that's a difference of $60 per month.

Adjustable-rate mortgages aren't for everyone, but for the right household, they can be a terrific fit. A few scenarios that warrant consideration of a 5-year ARM include persons:...

Read the COMPLETE BLOG POST HERE:

It's A Good Time To Look At Adjustable-Rate Mortgages

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Chris is Florida's #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and proudly the newest contributor to Lenderama.

Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210

The FHA Mortgage Pro

that FHA Mortgage Pros go to

when they need an FHA Mortgage Pro.

Orlando FHA Loans | MortgageChiliBlog.com.

Posted by Chris Brown - Florida's #1 FHA Mortgage Broker | Syndicated Mortgage Blogger on 10/13/2009 01:37 AM

Comments (3)

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3 Comments on It's A Good Time To Look At Adjustable-Rate Mortgages

OCT

I am sure that the payments for a time are lower, but is this rally a good way to go. Don't these products usually have surrender penalties if someone refinances before a certain period of time? How easy is it going to be to refinance later when the interest rates reset at much higher rates.

I trust as a mortgage adviser you can name some situations that an ARM makes sense today. Probably there are some, there have obviously been some that have bought using ARMs in the past that regret it today. I doubt many expected the current state of the real estate market or the tougher circumstances for getting credit.

HI Chris, not a bad idea, of all the ARMs FHA is unquestionably the best. However, any ARM is a tough sell in the aftermath of ARM Armageddon.

I close a respectable number of loans each month and I haven't closed an ARM of any variety in over a year.

Like Bill, I see very little demand for ARMS, but now that the gap is approaching a full point (in Calif. I'm seeing 4.625% vs. 3.625%, it may make sense for some people.

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