Deep Listener Blog

Mortgage Refinance Rates for ARMs

August 28th, 2009

Way back in January 2009, a unique situation occurred regarding mortgage refinance rates in that adjustable rate mortgages, or ARMs, were being priced almost identically to fixed rate mortgage products.  Much of that had to do with mortgage spreads and the cost of short term money, but none the less, it was a mortgage rate pricing event seldom experienced.

By now, most refinancing homeowners are scared to death of even thinking about an adjustable rate mortgage after witnessing the high foreclosure rates for those holding ARM loans in recent months.  Yet, there are scenarios where an adjustable rate mortgage can financially benefit a homeowner, especially when ARM mortgage refinance rates are priced much lower than their fixed rate counterparts.  If you know that you will be in your new home loan for less than seven years, then give an ARM a shot with your mortgage lender.

Entry Filed under: Business