How You Can Beat the Rates With a Great Loan

An adjustable-rate mortgage could help you offset our rising rates.

High interest rates got you down? My special guest and I have a solution for you today. As always, I’m joined by Mr. Licorice, but we’re also talking with a mortgage expert, Drew “MortgageWhip” Whipple. 

Rates are high, but some alternative loan products might help. Most people get a 30-year fixed mortgage, and if you go that route, your interest rate will be around 6%. However, there is another option: an adjustable-rate mortgage, or ARM. The ARM product isn’t always the best, but it’s a great alternative in a market with increasing rates. The loan is based on a 30-year time frame, but the interest rate is only locked for five years.

Over five years, you’ll save about $24,000 compared to a normal mortgage.

With this loan, people always worry about what will happen five years down the line, but let’s look at what’s happening now. An ARM allows you to get a 4% to 4.5% interest rate, which saves you about $400 per month over the 30-year fixed mortgage. Over five years, you’ll save about $24,000 compared to a normal mortgage, and if rates drop, we can always refinance you into a 30-year fixed loan.

If you have any questions for Drew or about ARM, call him at (856) 924-1682 or email him at dwhipple@EveshamMortgage.com. If you have any other real estate-related questions, feel free to call or email me. I’d love to help.