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10 Year ARM Rates
While current 10/1 ARM rates are not represented
in the survey at the top of this page, most
of the lenders and brokers listed still
offer this product. MoneyRates, the company
that puts the survey together, simply limits
the number of mortgage programs posted for
ease of use. With a 10 year adjustable
rate mortgage, the rate stays fixed
for the first ten years of the loan before
adjusting up or down for the remaining years
of the mortgage (most have a 30 year amortization).
When fixed mortgage rates are low, there
may be little benefit to a 10 year ARM as
rates for these products may be the same
or even higher than fixed rates. However,
there are times when 10/1 ARM rates are
considerably lower than that of a 30 year
fixed rate mortgage making this long term
ARM product appealing. The biggest questions
you need to ask yourself are:
1. Do you envision being in the home for
more than 10-12 years?
2. Is the rate that much lower than current
30,20, or 15 year pricing that it makes
it worth the interest rate risk of an ARM?
3. Are you in a financial position where
you can afford higher payments if for some
reason you are unable to refinance out of
the ARM after the 10 years pass?
Ask your mortgage professional to go through
the pros and cons or 10 year adjustable
rate mortgage products.
10/1
ARM Highlights
- Introductory rate is fixed for the first
120 months of the loan prior to its first
rate adjustment.
- At certain times, 10 year ARM rates
can be appealing when fixed rate mortgages
are higher.
- Caps, Margins, and Indexes will vary
by product and investor. Be sure to ask
a mortgage professional for details.
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