30 year fixed mortgage rates remain at historically low levels. However, it may be a great time to consider an adjustable rate mortgage ( ARM ).
If you’re considering a home purchase or a refinance and plan to be in the home less than 5 years you’d be wise to review ARM loans. Today’s rate on a 5 yr ARM is 3.875% with no origination fee or 3.625% with a 1% fee. That’s over a point lower than the current 30 year fixed.
On a $200,000 loan that comes to a monthly savings of $140 compared to the 30 year fixed. Adding a 10 year interest only option increases the rate .375%, but saves over $365 per month compared to the 30 yr. That’s big savings.
If you’re certain you’ll be in the home less than 5 years this is a very safe loan option. You’ll be out of the loan before it adjusts.
Posted by Scott Fowler. For a detailed quote you can call me toll free @ 877-627-9211 x 104 or email SFowler@HorizonFinancial.org. Visit my website @ www.ScottFowlerTeam.com.
