Tuesday, October 3, 2017
Financially well-heeled borrowers often use an adjustable rate mortgage as a way to aggressively pay down principal by using the lower rate associated with the ARM. For example, if a 30-year fixed rate is 4.00% and a 7/1 ARM is 3.25%, you can take out the ARM but pay as a 30-year fixed to quickly reduce the loan’s principal balance. This option really depends on your financial goals. For advice and rates specific to your income situation, contact a Jumbo Genius here or call 708-531-8388.
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