Five Year Arm Rates Improve

There has been a lot of news about people who bought homes with no money down on 2 or 3 year adjustable rate mortgages who are now in trouble as appreciation has slowed and credit has tightened making it harder for people with bad credit to refinance. A lot of that is true. However now because of recent changes in world markets a 5/1 ARM which is fixed for 5 years and has a maximum 6th year adjustment of 2 percentage points is available at 4.75%. The APR would be 4.84%. This is a super rate for a responsible borrower. 30 year fixed rates are now in the 5.5% range which is also a rate we have not seen for some time. The spread has widened in the last few days between 3/1, 5/1 ARMs and 30 year fixed rates to make the ARM worth considering. This type of ARM is a conforming product with no prepayment penalty unlike the 2/28 and 3/27 ARM of years ago that adjusted each six months. For a more detailed explanation contact Loan Officer Pete Cannon at Great Lakes Mortgage Corp. today at 414-416-9194