Posted on: 28th Oct, 2013 03:00 am
We want to take advantage of the lower rates so we want to go for a 5/1 ARM. But we are also scared that the rates might go up and we may not refinance. We are not sure even if we will be moving within 5 years. Is the loan option right for us?
As you are scared of the fact that the rates might go up, then you can take out a fixed mortgage rather than going for the adjustable rate option.
Hi Barrel!
Welcome to the forums!
Niicss is right in saying so. There are chances that the rates will rise as the real estate and mortgage market is improving. In such a situation, I will suggest you to follow the suggestion of Niicss.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
Niicss is right in saying so. There are chances that the rates will rise as the real estate and mortgage market is improving. In such a situation, I will suggest you to follow the suggestion of Niicss.
Feel free to ask if you've further queries.
Sussane
Yes, it is wise enough on your part to take out a fixed rate mortgage loan. The interest rates can rise anytime and as such, locking yourself to the fixed rate is the right decision.
Adjustable-rate mortgage was one of the major contributing factors to the recently concluded foreclosure crisis. So, better not use that as your refinancing option.