If you have been contemplating refinancing your 10-1 ARM mortgage loans, we can help you through this process. As a borrower, you have the option of refinancing the loan you currently have in order to make more comfortable payments from this day forward. Of course, there are advantages to getting a 10-1 arm loan and it is a popular option among many of today’s borrowers. But it isn’t for everybody.
Adjustable-rate mortgages also known as an “ARM” lets you keep the same rate of interest for a specified amount of time. With a 10/1 ARM, the rate of interest stays the same for ten years. At the end of the ARM decade, the rate of interest can go up or down, depending on the market, but the rate can be reset only once annually.
Adjustable-rate mortgages give you the advantage of paying a lower initial rate of interest compared to a comparable mortgage with a fixed-rate. Plus, the rate of interest can go even lower depending on the market after the introductory period. The market unpredictability can cause climbing rates of interest which will drive up your payments each month. ARM is according to the whim of the housing market, unlike a fixed-rate mortgage.
You can always refinance your 10-1 arm. A 10-1 arm is when you are looking to buy and interest rates are high or you expect to own for a decade or less, a 10-1 ARM or adjustable-rate mortgage will have the same interest rate for ten years. When the decade is up, the interest rates can fluctuate. This is an advantage for buyers who think they can pay off their mortgage within ten years.
After all, if you are not planning to live in one house for three decades, there is no need to borrow for thirty years to buy it.