Monday, March 8, 2010

Be Careful when Planning to Switch your ARM Home Loan to Fixed Rate

If you now have an ARM home loan in place, be careful when you consider shifting your mortgage from ARM to fixed rate. 
Some borrowers with adjustable-rate mortgages (ARMs) where rate has adjusted in recent years are now enjoying extremely low interest rates.  The consider low levels of the rate indexes used by most ARMs.
But these low rates bring on nervousness for some borrowers that rates will rise. 
Switching to a fixed-rate mortgage (FRM) in today's market can be tricky, and that might double the rate.  You don't want to be forced into that. 
You should consider the mortgage markets and consult with a certified loan professional who will have data to help with this choice.
We also recommend that you consult with your income tax professional, financial planner or certified public accountant before making any such decision to move from your ARM loan to a fixed rate home loan.

Harrison K. Long, Realtor & broker, Explore Group, Coldwell Banker Previews, Irvine, CA.  CA DRE #01410855.  Lawyer member of the California State Bar Association - State Bar number 69137.  Member of National Association of Realtors, California Association of Realtors, and Orange County Association of Realtors.  Now serving as Chairperson of Local Government Relations south committee at OCAR. 


Posted via email from Explore OC Homes


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