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Is it time to consider an adjustable-rate mortgage?

April 24, 2023 By Geoffrey Disch Leave a Comment

With mortgage rates still firmly in the 6+percent range, and unlikely to drastically decline anytime soon, some real estate analysts are encouraging would-be buyers to consider taking an adjustable-rate mortgage or ARM.

This would allow buyers to have a lower rate during the earlier years of the loan, although after a certain time period the rate will adjust based on market conditions, which can be risky.

Buyers who take out an ARM should have an exit strategy: either refinance to a fixed rate mortgage, sell the house or convert it into an investment which will cover the higher interest rate.

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Filed Under: Real Estate Tagged With: Adjustable-rate mortgage, ARM

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