Handling the adjustable rate mortgages is going to be a tough task.The day you find the mortgage interest rate skyrocketing is going to be shocking – very shocking !!But this is the risk involved with the adjustable rate mortgage.Many home owners buy these loans because they would have decided that they could get a refinance soon after getting the ARM.
What are the types of Adjustable Rate Mortgage loans?
These are the types:
- 5/1 ARM loans
- 3/1 ARM loans
- 2/1 ARM loans
What do they mean?
A 5/1 loan means that you would be having a fixed rate for 5 years and then be given adjustable rates for the remaining term[25 years].
