Tips On Refinancing Your Home – When To Convert To An Arm
Common advice tells borrowers they should refinance their adjustable rate mortgage (ARM) to a fixed-rate mortgage. However, there are times when it makes better financial sense to do the reverse. The prime reason is that an ARM provides lower rates.
Low Interest Rates Of An ARM
An ARMs primary benefit is a lower interest rate. Typically a couple of points lower than a fixed-rate mortgage, an ARM can save you thousands. The downside is that an ARMs rates can rise.
However, if you are planning to move in a couple of years or expect rates to drop, then an ARM may be worth the risk. If you are worried about rising rates, you can select an ARM with rate and payment caps. There are also ARMs that convert to a fixed-rate after a preset number of years.
Smaller Payments With An ARM
An ARM can also give you smaller payments temporarily through lower rates. Even though these payments may rise, you can expect your wages to increase with the rate of inflation as well.
If you need some temporary breathing room in your budget, you may find that an ARM can help. There is always...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
