New Home Sales Up; Busy Season Ahead for Housing
Data released on Friday, about it information pills May 23rd from the U.S. Census Bureau and the Department of Housing and Urban Development revealed that new residential home sales in April were up 6.4 percent from the revised March estimate of 407, page 000. Sales reached a total of …
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Notice of Regulatory Waiver Requests Granted for the First Quarter of Calendar …
SUMMARY: Section 106 of the Department of Housing and Urban Development Reform Act of 1989 requires HUD to publish quarterly Federal Register notices of all regulatory waivers that HUD has approved. Each notice covers … For ease of reference, the …
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Question by madss: ARM mortgages often have a lower rate of interest the first year…?
ARM mortgages often have a lower rate of interest the first year why is it less chancy to stick with a fixed rate mortgage just the same?
Best answer:
Answer by Duck
Because if (and when) the low rate on your ARM goes up, stomach the fixed rate mortgage will stay the same. So, let’s say that you get a fixed rate of 4.25%. That 4.25% will stay 4.25% until you pay off the mortgage. If you have an ARM at 2.25% and it stays 2.25% you’re doing well, but if the rate goes up to, say 6%, 7%, or even higher, you’re left holding the bag, so to speak. Your payments will increase, and you’ll be out money.
Give your answer to this question below!
DONT DO IT PLEASE! One month your mortage can be 2k for example then the next rates may jump a point or so and your mortage can jump 500 or more. This is why people lost their homes because of crappy arm loans. If you can handle an extra 1000 a month on any given month for your mortgage go for it. if not, dont bother.
B/c rates tend to go up, so while you have a lower rate in the first year, you have a higher rate for the majority of your loan.