ARMs offer tempting mortgage savings, but there’s a risk

A new study from Redfin shows that homebuyers could save an average of $260 per month if they purchase a home now with an adjustable-rate mortgage rather than a traditional fixed-rate loan. That would mean savings of more than $15,000 over the first five years of the loan. It’s a tempting number that explains why

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Demand for adjustable-rate mortgages hits 14-year high

Demand for mortgages is on the rise due to what analysts say is an increase in listings on the market and fear that interest rates will continue climbing higher. However, buyers are increasingly turning to adjustable-rate mortgages, or ARMs, as opposed to standard fixed-rate mortgages. ARMs have an advantage in that they offer lower initial

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As interest rates rise, adjustable-rate mortgages may appeal to more buyers

Although adjustable-rate mortgages are known to be riskier than their fixed-rate counterparts, some home buyers may want to consider them as interest rates keep on rising. So-called ARMs typically come with a lower initial interest rate than a 30-year fixed-rate mortgage will start with, with the rate subject to change after a defined period of

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Should I Use An Adjustable Rate Mortgage To Finance My Home?

When you purchase or refinance your home, in your quest to find the best mortgage rates, you may may be offered an adjustable rate mortgage as an option to a fixed rate mortgage. Your mortgage officer may suggest an adjustable rate because the initial interest rate will be lower, making the monthly payment lower than

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Don’t worry about adjustable-rate mortgages, experts say

Housing analysts have raised concerns that borrowers are becoming increasingly reckless when taking out so-called adjustable-rate mortgages, similar to the way they were abused in the years before the Great Recession more than a decade ago. The problem is that borrowers are asking for much higher loan amounts than they have been in recent years.

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Adjustable-rate mortgages grow more popular in expensive markets

More buyers are opting for adjustable-rate mortgages in order to cut costs amid rising interest rates, new data from CoreLogic shows. They’re doing so even as the potential savings between a fixed-rate mortgage and an ARM get narrower. According to Freddie Mac data, the average rate on both a 30-year fixed rate mortgage and a

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Buyers are going all-out to win bidding wars

What with buyer demand reaching epic levels amid the ongoing housing inventory crisis, some shoppers are stretching their budgets to the max.

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