Over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name” however, there are truly benefits to utilizing an ARM, which include:
- ARM rates are now more attractive than ever before.
- Rates have fallen to 2.625% for a 5/1 ARM.
- ARM’s are predictable:
- Rates are capped so there are no surprises for borrowers.
- Rates adjust only on the remaining principal of the loan.
- Rate adjustments could decrease/increase, but the adjustments are limited to a prevailing market index in which the ARM is based.
- Most ARM’s do not have a pre-payment penalty
- Lower Monthly Payments which Increase your buying power.
Continue reading “The Benefits of ARM’s; St Louis Mortgage Interest Rate Update“