Is an Adjustable Rate Mortgage Worth It?

with the higher interest rates that we're seeing adjustable rate mortgages which don't become more popular again they'd be very attractive because the first few years you have a low interest rate and a low monthly payment compared to a 30-year fixed rate mortgage but what you need to keep in mind is that that interest rate is going to keep going up the longer you have that loan out and your monthly payment is going to increase year over year now this may not be that big of a deal if you know you only intend to live in that house for a few years and then sell it or you speculate that interest rates may go down later on and that you can refinance into a lower fixed rate mortgage payment but keep in mind that this type of loan was a major contributor to the 2008 housing crash many homeowners entered into this type of loan expect to be able to refinance later on or just sell the house but as home values started dropping and they're underwater on their mortgage refinancing just wasn't an option

Channel: Malcolm Lawson - REALTOR

Views: 1,413

Keywords: Malcolm Lawson, ARM Loans, adjustable rate mortgage, home loans, home mortgages, lower interest rate, adjustable rate mortgage vs fixed rate, adjustable rate mortgage explained

Id: LTv-Piw3fLo

Length: 0min 49sec (49 seconds)

Published: Mon Jun 05 2023