MORTGAGE MONDAY: ARM’S ARE ON THE RISE
As housing prices continue their upward trend buyers are seeking more affordable mortgage solutions. One answer….ARM’s. With rates during the initial period that are significantly lower than 30 year rates, buyers can stretch to higher purchase prices while still keeping their monthly mortgage payments affordable. Though these riskier ARM loans are often blamed for the epic housing crash in the late 2000s, the current ARMs are nothing like those of the past. Loans must now be fully documented and underwritten to the full length of the loan in order to make sure borrowers can pay even if the rate goes up.
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