If you’ve been thinking about buying a home or you currently own a home and are thinking about refinancing you most likely will be familiar with Adjustable Rate Mortgage loans or ARM Mortgages as they are known in the industry.
With an ARM mortgage loan you can get a mortgage loan at a low mortgage interest rate now but the catch is that your mortgage interest rate will increase as interest rates increase but what exactly is a convertible ARM?
How A Convertible ARM Works
With a Convertible ARM you will have the option of converting your Adjustable Rate Mortgage to a conventional, fixed rate mortgage loan and avoid the problem of being unable to pay your mortgage loan when interest rates increase.
Most financial institutions will charge you a fee to convert your mortgage loan from ARM to fixed rate mortgage loan so it’s important for you to make sure that your mortgage lender reveals all of the fees you can expect to pay with your convertible ARM loan BEFORE you sign up for one.
Best of Both Worlds
Choosing a convertible ARM loan is really the best of both worlds because you will be able to save money on both the front end and back end of your mortgage loan.
You will benefit from having a low mortgage interest rate up front and when mortgage interest rates do begin to rise you can get out of the ARM loan then switch to a fixed rate mortgage loan just in time.
At Fred Sed Realty we work personally with lenders who can get you the lowest mortgage interest rates and best mortgage loans.
To learn more about how much you qualify for contact us today by calling (800) 921-9231 or connect with us through our website