I thought Adjustable Mortgages were Out of Here!5/14/2014
Is your mailbox overloaded with offers to reduce your mortgage payment? I must get at least 4 offers a week from different companies wanting to help me out on reducing my own monthly mortgage payment. I actually sat down last night and looked at the difference in my current payment versus this new payment they were offering me. Yep, I was looking for the "catch" and realized they were offering me an ADJUSTABLE rate over my current fixed rate. The new one would be a lower rate for 5 years then start adjusting. I have had adjustable rate mortgages over the years and actually liked it! I am tempted to look further into this particular one, but my current fixed rate has a removeable PMI payment that I can have taken off in several years and the new mortgages do not have that option. Needless to say, you sometimes need to look at all options when mortgaging your new home or refinancing your current house. If you don't intend to stay more than 5 years in a home, an adjustable rate might be just what you're looking for!