mortgage

How to cope with higher mortgage rates

Mortgage » How To Cope With Higher Mortgage Rates

Rate roulette
Rate roulette

An even riskier option is a one-year ARM, which has an initial rate that lasts only 12 months before it begins to adjust, usually annually or monthly.

This type of loan typically has a lower rate than a 30-year fixed-rate mortgage. And lately, the initial rates on one-year ARMs have been higher than the initial rates on 5/1 ARMs in Bankrate's weekly surveys.

Thomsen says the savings on a one-year ARM aren't worth the risk.

"We would never recommend that," he says, "You only have 12 payments at a certain rate, and the difference between a seven-year rate and one-year rate is minimal."

advertisement

          Connect with us
advertisement
advertisement

Blog

Holden Lewis

Brexit means lock your mortgage rate ASAP

Lock your mortgage rate now because today's rate plunge might not last long. That's today's advice from mortgage brokers and loan officers.  ... Read more

advertisement

Connect with us