Tag Archive for: ARMs

Why ARMs Remain Awful; Is Crypto Cool for Mortgages? Rates Lower Than Last Year!

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Borrowers still frequently request ARMs because they have short-term time horizons and want to save as much as they can on their mortgages. They either expect to move or sell in under 5 years, or they’re expecting a liquidity event (very common in Austin and the San Francisco Bay Area) that will enable them to pay off their mortgages. BUT – the problem is that ARM rates are not lower than 30-year fixed rates.Read More

Why ARM Rates Are So Close to 30-Year Rates

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Apparently, in 2002, it was “Hot In Herre” – or at least it was according to Nelly. I, however, had no idea because I had never heard the song, and […]Read More

What Are Interest-Only Mortgages and How Do They Work?

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An interest-only (I/O) mortgage is a type of mortgage in which the borrower is only required to make interest payments for a set initial period. Interest-only mortgages can be helpful for several reasons, but it is important to understand the pros and cons when determining if this loan type is a good fit for you.Read More

High Rates; Softer Market; ARMs; Housing Shortages; Recessions; Refis

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Highest Mortgage Rates Since 2009 Last week’s sky-high inflation numbers have pushed 10-Year Treasury rates to levels we have not seen since 2018. While mortgage rates are at levels we […]Read More

Rates Back to 2009 Levels; Time for ARMs!

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Mortgage rates have climbed to their highest level since 2009! One way to combat the rise in rates is to take an ARM instead of a 30-year fixed-rate loan.Read More

Offer Rent-Backs To Get Offers Accepted; ARMS Are Back!

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ONE MORE REASON JUMBO RATES ARE LOWER THAN CONFORMING After reading this recent blog, a friend of mine who owns a mortgage bank reminded me of one more reason why […]Read More

Jumbo Market Lives; Inflation = Windfall; Why Lenders Are Terrified of Forbearances

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I am repeating this b/c I am still getting so many questions: The Jumbo Market Definitely Lives. Jumbo buyers with 20% down can buy up to $1.6 million in CA […]Read More

Explaining Mortgage Rates for Borrowers in Texas

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Mortgage rates are a hot topic for borrowers in Texas. Everyone wants to get the best mortgage rate possible when they’re getting ready to take out a loan for their home purchase.Read More

Things to Know When Considering ARM Financing

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Not all buyers go for the tried-and-true 30-year fixed-rate mortgage. For some, an Adjustable Rate Mortgage (ARM) is a better loan product for their housing needs. Here are a few things to keep in mind for buyers considering using an ARM to finance their property.Read More

Things to Know About ARM Loans in California

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An ARM Loan (Adjustable-Rate Mortgage) is exactly what it sounds like: it’s a mortgage loan that has an interest rate that can change, or adjust, over time. Rates usually hold for a certain amount of time and then begin to adjust based on the type of ARM Loan a borrower secured.Read More

The “Yield Curve”; What It Is, and Why It Matters

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After the 2008 meltdown, almost all of our borrowers insisted on only 30 year fixed rate mortgages b/c so many had heard horror stories about adjustable-rate mortgages, or ARMs. The […]Read More

ARMs Are Not Evil; Defense of Adjustable Rates

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A 47 year old borrower came to us recently with a $1.4 million mortgage and 5 years left on an Adjustable Rate Mortgage (ARM) at 2.875%. He plans to be in […]Read More