Boca Mortgage Blog

How Adjustable Rates Work Well For Some

June 24th, 2014 3:29 PM by Leonard Silvestri

Are you afraid of adjustable rates? Is it a term that sends you running in the opposite direction? So many people are afraid of adjustable rates because they fear the risk, but this type of loan may work for you. The article below goes into the many reasons that an adjustable rate may be your best option.

“But risks are worth taking when the benefits are large and the downside is known and manageable. This is the case for hybrid ARMs that have a fixed-rate period of some years at the beginning, before annual rate adjustments kick in. My impression is that too many borrowers are taking fixed-rate mortgages as the easier path without considering whether an ARM might serve them better. The purpose of this column is to describe the factors that prospective borrowers ought to consider before making a decision on whether they want an FRM or an ARM.”

Posted in:General
Posted by Leonard Silvestri on June 24th, 2014 3:29 PM

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