Fra Noi Embrace Your Inner Italian
Today’s mortgage interest rate environment is without question the lowest it has been in decades. So why would anyone want to take an ARM (adjustable rate mortgage) instead of a fixed rate? First off, let’s talk about how adjustable rate mortgages work. Most ARMs are spread over 30 years, just like a 30-year fixed-rate mortgage (a mortage where the interest rate never changes, by the way). The most common ARMs are the 3/1, 5/1, and 7/1 Treasury or Libor ARM. What this means is that the rate will stay fixed for 3, 5 or 7 years respectively and then will …
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