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Just found out ARM caps can actually protect you from the worst rate jumps
I was always against adjustable rate mortgages, thought they were just a gamble. But I was reading this breakdown on the HousingWire site last night and saw that the periodic and lifetime caps are mandatory on most ARMs now. On a 5/1 ARM in Phoenix, the rate can only go up 2% per adjustment and 5% total over the life of the loan. So even if rates spike, your monthly payment can't double overnight. That changed my mind a bit. Has anyone else had a good experience using an ARM during a high rate period?
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kaid5917d ago
Thought you were safe from the roller coaster, huh?
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fox.derek17d agoTop Commenter
Been there. What worked for me was setting a hard limit on how many small upgrades I'd allow myself before stepping back for a month. That initial spike of excitement fades fast when you realize you're spending time tweaking instead of actually using the thing. Keep a notepad app handy and jot down ideas without pulling the trigger. Give it a week before you act on any of them. Most of em won't look as good after a few days of sitting on them anyway.
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