Which Are Better: Fixed-Rate Mortgages or ARMs?
It turns out not everyone sees fixed-rate loans as the belle of the ball. Many mortgage experts and financial advisors say an ARM can be the best choice for certain investors due to lower payments and, often, lower closing costs.
"Most savvy borrowers do consider ARMs as their chosen program," says Mat Ishbia, president and CEO of United Wholesale Mortgage, a lender in Troy, Michigan. "They are fully aware of when the loan terms are subject to change and take advantage of the low rates and potential to pay off their mortgage quicker (through extra principal payments) than a traditional fixed loan."
It turns out not everyone sees fixed-rate loans as the belle of the ball. Many mortgage experts and financial advisors say an ARM can be the best choice for certain investors due to lower payments and, often, lower closing costs.
"Most savvy borrowers do consider ARMs as their chosen program," says Mat Ishbia, president and CEO of United Wholesale Mortgage, a lender in Troy, Michigan. "They are fully aware of when the loan terms are subject to change and take advantage of the low rates and potential to pay off their mortgage quicker (through extra principal payments) than a traditional fixed loan."
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