Is an Adjustable Rate Mortgage loan right for you?
Comparing fixed rate and ARM mortgages will help your client choose the best home loan for their current needs and future goals. According to the latest data from the Mortgage Bankers Association, 95% of borrowers select a Fixed Rate Mortgage, even though it may not be the best option for them. The most common loan originated is a 30 year fixed rate. However, the average lifespan of a mortgage is under 10 years. It’s very common for people to obtain a new loan through a refinance or new home purchase prior to the end of the term.Â
In today’s rising rate environment, is an ARM something to consider? We think so, especially our long 10 year and 15 year ARM products as they are safe and will give you a competitive edge.
Adjustable Rate Mortgage loan options and highlights:
- Terms include: 3, 5, 7, 10, and 15 year
- Our 15/6 ARM product is amortized over a 30 term and current rates are roughly .5% lower than the 30 yr fixed term. This offers borrowers less risk than other comparable loan products.
- 10/1 ARM has a fixed rate for the first 10 years of the loan. The rate then becomes variable and adjusts every year for the remaining life of the term.
