With mortgage refinancing rates at near fifty-year lows all the cool kids are opting for 5/1 Adjustable Rate Mortgages. ARM refi loans were all the rage before the meltdown and were largely responsible for the financial crisis that sparked the recession. Should you risk your financial well-being to save fifty bucks a month on your mortgage payment? Here’s an article on TheTruthAboutMortgage.com that explores the advantages of 5/1 Adjustable Rate Mortgages vs. a traditional 30-year fixed rate home loan:
Everyone has heard of the 30-year fixed-rate mortgage – it’s far and away the most popular type out there. But what about the 5/1 ARM? Do you even know what a 5/1 ARM is? Put simply, it’s an adjustable-rate mortgage with a 30-year term that’s fixed for the first five years and adjustable for the remaining 25 years. After the first five years are up, the interest rate can adjust once annually, up or down.
Once you’ve decided to go forward with your mortgage refi you’ll want to pay close attention to the fees you’re paying to close. Getting the best refinance rates for your next home loan is easy, especially with a 5/1 ARM; however, the trick is to avoid paying junk fees at closing. The more you pay to get your home loan the longer it’s going to recoup your expenses before breaking even.
You can learn more about mortgage refinancing without paying unnecessary fees to the broker and lender by checking out my free Underground Mortgage Videos.