Fixed Rate Mortgage Refinance Loan Alpine CA
www.affordable-payment.com can help you shop through a variety of lenders, banks, mortgage brokers and providing you custom rates without any of these banks, lenders, brokers. You do not have to give out your personal information to any of these brokers or lenders. Get qualified for the lowest mortgage and right program and excellent support from Affordable payment.
In this Article we shall focus on answering some common queries of Alpine CA mortgage borrowers:
What is 5/1 ARM For Alpine CA Mortgage Borrowers?
A 5/1 ARM means that the rate is going to be fixed for first 5 years of the mortgage. After 5th year end that is 60th month. Before the 61st payment is made the rate will adjust once a year and whatever that rate be. It shall continue throughout the year at the same rate with no change. There after it shall change once again before the 84th month payment or beginning of the 7th year and whatever the rates adjust to be. It shall continue at the same rate for coming 12 months and this pattern shall continue for 30 years as the payment on 5/1 is calculated on a fully amortizing basis for 30 years. Meaning that should the borrower continue on a 5/1 ARM without refinancing for 30 years. The principal balance will become zero at the end of the 30th year.In Article Ads
Now a question arises as to against what do the rates change every year. There has to be some link to something against or what is it that interest rates follow against which they change.
These adjustable rates are tied to Government treasury indexes. Like LIBOR (London Inter Bank Offering Rate) or COSI (cost of savings index). These would be mentioned documented on the borrowers Note and shall be explained by your Alpine CA mortgage expert.
Why should Alpine CA Mortgage Borrowers be looking for 5/1 ARM rates?
Truly speaking its how the borrower wants to manage his finance and how your mortgage expert feels you should and you may be asked to think of such an option. Typically if one is about to sell the home or move out for any reason, they love this product because the rates are amazingly low on 5/1 ARM.
Advantages and disadvantages of 5/1 ARM for Alpine CA Mortgage Borrowers?
Those borrowers who have less down payment to make can move into the house with a low mortgage payment.
The disadvantage is that when the rate start to adjust the monthly payment can shoot up causing concern to the mortgage borrower.
You can contact your Alpine CA mortgage expert to get you the lowest mortgage rate on your refinance.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower
30 yr fixed refi 3.807% APR 3.775%Rate | At 0 pts
20 yr fixed refi 3.500%APR 3.500% Rate | At 0 pts
15 yr fixed refi 3.044%APR 3.000% Rate | At 0 pts
10 yr fixed refi 2.940%APR 2.875% Rate | At 0 pts
Artical by Roger Shanker
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