My question is - can I get an ARM, benefit from the introductory period by paying less interest. Then refinance to a Fixed rate just before the introductory period ends. This way, I’ve benefited from the low introductory rate for the first 3-5 years. Is there a penalty if you change from an ARM to a Fixed rate before the introductory period ends?
This just sounds like a variable rate mortgage with extra steps. There might be a 5 point cap, but that's a significant number. A change of even a single point is huge for most people, and even in your example, the cap is more than twice the original rate! This sounds like just another way of tricking poor people into gambling with their livelihood.
I don’t understand the issue with an ARM. If you can’t refinance or you can’t afford the max payment you purchased a house you cannot afford. If you purchased something within your means by putting down 20% and/or paying it off before the introduction period ends you’ll never be under water and will always be able to refinance if necessary.
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Excellent. Thank you so much.
Question. What if i get a 5year arm, and pay off the house before the 5 years is up. are there any penalties
My question is - can I get an ARM, benefit from the introductory period by paying less interest. Then refinance to a Fixed rate just before the introductory period ends. This way, I’ve benefited from the low introductory rate for the first 3-5 years. Is there a penalty if you change from an ARM to a Fixed rate before the introductory period ends?
you can but as she mentioned pay attention to refinance cost.
If you can pay a lot in the first 5 years and reduce the principal then arms are worth it.
Thank you.
Thank you so much darling so helpful
$300,000 at 5.5% over a 30 year term, has a P&I payment of $1703.36, not $2159.
I noticed that difference seemed off too
Not sure how she’s computing that.
Great video, thanks!
Thank youuuu
This just sounds like a variable rate mortgage with extra steps. There might be a 5 point cap, but that's a significant number. A change of even a single point is huge for most people, and even in your example, the cap is more than twice the original rate! This sounds like just another way of tricking poor people into gambling with their livelihood.
Interest is currently 10%. How the hell is that worth it even to begin with? 😂
Why is Linda Cardellini giving me mortgage advice? 😂
If you're looking at an ARM, 2008 called and wants to sell you a bridge.
I don’t understand the issue with an ARM. If you can’t refinance or you can’t afford the max payment you purchased a house you cannot afford.
If you purchased something within your means by putting down 20% and/or paying it off before the introduction period ends you’ll never be under water and will always be able to refinance if necessary.