A 7-1 adjustable-rate mortgage or ARM carries a fixed rate of interest for the first seven years of your loan’s term with a fixed interest and principal payments. After seven years, the rate of interest changes depending on many different factors. This is attractive to borrowers because there are going to be lower interests to pay in the first seven years. If you are shopping around for a mortgage the 7-1 ARM Jumbo may be worth the risk.
Jumbo loans exceed the Federal Housing Authority’s limits and are not supported by Freddie Mac or Fannie Mae. Designed fo finance luxury homes and property within highly competitive markets of real estate, there are unique underwritings for jumbo mortgages. These loans have gained int traction with the recovery of the housing market. Check your state jumbo mortgage values to see what you are eligible for.
You need to weigh the rewards versus the risks of the 7-1 ARM jumbo. Remember, with this mortgage, you get a discounted rate for seven years and it would be a cheaper rate than a 30-year fixed mortgage. Those who plan to stay in their home and pay off their mortgage can face possibilities or resetting their rates of interest in the future to become higher or lower.
After all, you don’t want to get caught in the surge of mortgage rates. This loan program makes a lot of sense for most Americans who refinance or sell their home within seven years. Give us a call to see if you can avail of this extremely popular mortgage choice. We can help you determine what will work best in your current situation and help you make the appropriate changes.
On the other hand, if you are caught in a 7-1 Arm and are looking to refinance your mortgage, give us a call and we can discuss what kind of term payment will work best for you.