Here’s how adjustable-rate mortgages can help you save on your rate.
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Today I am pleased to be joined by Dave Marzinke from Movement Mortgage. Recently, we’ve been
hearing about interest rates non-stop, so Dave wants to share some strategies you can use to lower
your rate and get a great mortgage.
Dave recommends looking at adjustable-rate mortgages. Some people freak out when they hear the
term “adjustable rate,” but it could be the right loan product for you. Your lender should be able to
present all your options to you so that you know you're getting the best mortgage possible.
The two most popular adjustable-rate mortgages currently are 10/6 ARMs and 7/6 ARMs.For each product, the first number represents how many years the interest rate is locked in for, and
the second number tells you how often the rate adjusts after that time is over. In both these loans,
the rate would adjust every six months.
Usually, there is at least a three-quarter difference between your initial rate in an ARM and the standard 30-year-fixed rate. The 7/6 ARM’s rate is even lower than that. If you’re looking for
monthly savings, you should at least consider an adjustable-rate mortgage.
"Your lender should be able to present all your options to you."
Most people only stay in their homes for five to seven years. If you are in this boat, you can keep the
lower rate for the duration of your loan. Plus, if rates change, you can always refinance. Dave checks
in on the anniversary of each of his clients’ loans to make sure they’re still getting the best deal possible.
If you have questions for Dave about adjustable-rate mortgages or anything else, call or email me.
I’d love to put you in touch with him.
