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A Realtor's Guide to the Power of an Annual ARMWhy should you ALWAYS get a one year ARM rather than "locking" into a 30 year fixed rate loan? The easiest answer is that you will NEVER be able to accurately predict interest rates. Did you know that Wall Street gurus are wrong over 60% of the time with their interest rate projections over a 3-5 year timeframe? What makes you think you know better than them ?Did you know that over a five year period of time, the one year ARM has always outperformed a 30-year fixed rate loan? That statistic has held true for over 40 years. What that means is that your average interest cost for a five year period was less with a one year ARM, than with a traditional 30 year fixed-rate loan.. Let's look at the last five years and compare a LIBOR plus a 2.25% margin ARM to a 30 year fixed rate loan: READ MORE AT www.MortgageRatesReport.com |
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