As rates start to rise, many borrowers are considering an Adjustable Rate Mortgage.  Though these types of loans lost favor in 2008-2009, they are making a comeback and could be the right choice for borrowers who plan to move in the next 5 to 7 years.

An ARM might also be your best option if you are planning to pay off your mortgage in the next 5 to 7 years or you expect your income to rise substantially allowing you to comfortably handle a higher payment in 5 to 7 years.

And, don’t forget, ARMs do have built in caps which limit future payment increases.

ARMs are more complex than fixed rate mortgages and it’s critical that you understand “what you’re getting into” if you are considering an ARM.  Be sure to take the time to fully understand the benefits and the risks of an adjustable rate mortgage vs. a traditional fixed rate.

Though rates have eased up slightly over the past 6 or 7 weeks, it’s still a great time to refinance — especially with CapCenter’s zero closing cost mortgage program.

One often hears that it’s not worth refinancing unless you can reduce your rate by “x” amount, but that conventional wisdom doesn’t apply if you’re not paying closing costs.  We often counsel our borrowers to go ahead and refinance, but continue to make the same payment as their previous loan.  This enables them to pay off their current mortgage more quickly – which saves them ton of money!!