An Adjustable Rate Mortgage Might Not Be Your Best Option

Mortgage interest rates have plummeted over the past few years, and that might prompt you to consider applying for something different from a standard fixed-rate mortgage. You might think an adjustable-rate mortgage is the way to go, for example. That logic isn’t too far off base because:

• Adjustable rates are currently .75 percent less than fixed rates
• An ARM can save money for the first five years
• A 5/1 ARM might give you the best of both worlds

A 5/1 ARM might seem appealing to you because it will be fixed for the first five years and not adjust until afterward. You could spend the first five years saving money and enjoying the lowest interest rates in the industry. You could gather a nice little nest egg and then refinance or sell your home before your first five years end. That sounds like a win-win strategy, doesn’t it? Unfortunately, it’s not quite that simple.

Mortgage Rates Will Rise Eventually

• The record low interest rates will rise at some point
• The difference between ARMS and FRMS is small
• Your eventual “adjustment” might be too much to handle

It’s true that you could still benefit from an ARM for the first five years. However, the strategy might not be worth the effort. The future of our economy is uncertain right now, but it has to get better one day. Interest rates will surely rise at that time, and we don’t know how much that will be. Technically they could soar to an unimaginable level, which would leave you with an astronomical ARM payment that might burn you in the end. We suggest going with the traditional approach and looking at fixed loan options. ARMS are shaky because of the way the interest rate might explode in the future.

No Income Verification Loans for Owner Occupied Properties

We currently offer no-income-verification loans for owner-occupied properties. We’re one of the few providers who are willing to help self-employed individuals obtain mortgage loans with little to no documentation for their income. To qualify for such loans, our applicants must meet other qualifying criteria, such as a debt-to-income ratio of less than 43 percent. You may contact us by telephone or online inquiry to request additional information. We work with a huge network of loan providers and feel confident that we can help you find your next mortgage.

Contact one of our loan consultants to learn more about this program.