Converting your adjustable rate mortgage to fixed requires refinancing.
Your adjustable rate mortgage could be a
ticking time bomb to higher payments!
Did you know in 1983 Prime Rate hit 18%? Your adjustable mortgage payments would be just about triple what they are now! Now is a terrific time to convert your adjustable mortgage, or ARM to a fixed rate. For much of the 1980’s, a fixed mortgage at 12% was a good rate – double what many of today’s loans are at.
Many people were tempted to choose adjustable rate mortgages because at the time it was a substantially lower rate. That may have been a good decision at the time, however, times have changed. Just like an investment advisor will help you adjust to market conditions, so will we as mortgage planners consult with you to adjust with the changing market. If you don't like the fixed rates now, you sure won't like them in a few years!
Consider this: converting your adjustable into a fixed is like an insurance policy. Insurance doesn’t really save you money unless you need it. If your adjustable loan continues to rise, then you’ll be thankful you locked in a fixed rate mortgage. We tell you this because fixed rates are typically higher than similar adjustable loans, however, if you don’t like today’s fixed rates, you sure won’t like next year’s. As adjustable rates go up, so do fixed rates.
By the way, if you’re concerned about payments, be sure to ask about our terrific fixed-rate interest-only loans. They’re safe, and you can pay down principal if you so choose – you’re just not required to, and you get a lower payment. We also have 40 year and even 50 year loans to provide lower payments, and accelerated mortgage plans that pay your property off in as little as 11 years!
We’d be happy to show you options –
tell us a few details and we’ll get you some options.
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