Can someone explain this type of mortgage to me. DH and I went to an open house this weekend and they had a sheet with different mortgage options on it and this was one of them.
mlp924
Posted:
Member since
Re: 5/1 arm
I have a 7 year arm. The first 7 years are fixed and then the rate is adjustable yearly. It cannot raise more than 1% point a year. If we are going to be in the same house, we will probably refinance before the 7 years are up and switch over to a fixed rate.
It is a good way to get in the door and get started on payments without getting slammed.
februarybride
Posted:
Member since
Re: 5/1 arm
I have a 7 yr arm also. I thought it couldn't go up more than 2 pts a year...maybe that's just my mortgage. Over the course of the mortgage, the adjustable rate can not go up more than 4pts.
anjerandunder
Posted:
Member since
Re: 5/1 arm
we have a 5/1 and i think its a great way to get started..we won't have to worry about our rate going up for 5 years and we got a low rate to start out with..we'll be out of the co op in 5 years before it changes hopefully..
Chloegirl
Posted:
Member since
Re: 5/1 arm
Posted by anjerandunder
we have a 5/1 and i think its a great way to get started..we won't have to worry about our rate going up for 5 years and we got a low rate to start out with..we'll be out of the co op in 5 years before it changes hopefully..
We have the same thing...we will are only staying for about 5 years so it was perfect for us.
