5,240,010
The borrower can not afford the payment increase!
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John Juarez
Fremont, CA
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Debe Maxwell, CRS
Charlotte, NC
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Joseph Domino 480-390-...
Scottsdale, AZ
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
1,624,853
Simple: the monthly payment might skyrocket.
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
5,583,328
when rates increase, at the time of adjustment, that rate will follow suit....
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Thomas J. Nelson, REAL...
La Jolla, CA
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Ron and Alexandra Seigel
Carpinteria, CA
5,254,455
The interest rates max out.
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John Pusa
Glendale, CA
-
John Juarez
Fremont, CA
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Peter Testa
Danbury, CT
6,418,429
They often go Up.
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
3,349,554
rate increases
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
5,112,896
The rate could go up.
-
John Juarez
Fremont, CA
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Ron and Alexandra Seigel
Carpinteria, CA
510,664
The rate could go up! Knowing what index is used and how often it may adjust are important factors.
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John Juarez
Fremont, CA
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Nina Hollander, Broker
Charlotte, NC
1,598,452
Rate can be higher
-
John Juarez
Fremont, CA
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Nina Hollander, Broker
Charlotte, NC
4,176,822
Many great responses.
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
420,003
You have a low 5 year mortgage and you decide to stay 30 years; but can't get a new loan on month 58
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
2,071,025
Now you know, Anonymous
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John Juarez
Fremont, CA
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
7,864,108
Rates can rise. ARMs work best for home buyers who will not be in the home for many years.
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John Juarez
Fremont, CA
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Joseph Domino 480-390-...
Scottsdale, AZ
902,038
Rate "adjusts" over time (goes up) to unaffordable levels.
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John Juarez
Fremont, CA
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
5,060,679
The rate can and likely will go up after a period of time depending on the loan, possibly significantly
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John Juarez
Fremont, CA
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Debe Maxwell, CRS
Charlotte, NC
1,506,163
They adjust upwards
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
1,553,572
What Barbara Todaro said.
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
759,485
Rates going up.
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
5,772,587
rate could go up
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John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
291,107
Rates are "Adjustable"
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John Juarez
Fremont, CA
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Ron and Alexandra Seigel
Carpinteria, CA
1,323,219
Scanning the comments...it looks like everyone is on the same page with this one.
Me, too.
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John Pusa
Glendale, CA
2,450
The main reason to consider adjustable rate mortgages is that you may end up with a lower monthly. The bank (usually) rewards you with a lower initial rate because you're taking the risk that interest rates could rise in the future. Contrast the situation with a fixed rate mortgage, where the bank takes that risk.
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John Juarez
Fremont, CA
7,250
The main reason to consider adjustable-rate mortgages is that you may end up with a lower monthly. The bank (usually) rewards you with a lower initial rate because you're taking the risk that interest rates could rise in the future.
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John Juarez
Fremont, CA
962,483
You should look and the positives and negatives of ARM's. There are some benefits; an ARM is beneficial as long as it meets the specific situation of the borrower. For example, a borrower with a 7-year ARM who knows they will be moving in 5 years typically will have a lower interest rate, with the rate fixed for their time horizon. Making an informed decision knowing the positive benefits and the potential negative consequences is the answer. Focusing only on the negative will lead to an uninformed decision.
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John Juarez
Fremont, CA
5,877,455
Borrowers used to only have to qualify for the mid-range rate, not the top rate.