Adjustable Rate Mortgage
Should You Refinance Your ARM?
You should consider the following questions in deciding to
refinance an ARM:
- Could the next Interest Rate adjustment on your existing loan increase your monthly payments significantly?
- Will the new Interest Rate be two or three percentage Points higher than the prevailing rates being offered for either fixed rate loans or other ARMs?
- If the current Mortgage sets a cap on your monthly payments, are those payments large enough to pay off your loan by the end of the original Term?
- Will Refinancing to a new ARM or a fixed rate loan enable you to pay your loan in full by the end of the term?
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