Top Contributors (View All)

Find a Top Real Estate Agent Near You

Is an ARM loan risky?

Is an ARM loan risky? I'm considering taking out an ARM loan at a lower interest rate with the hope of refinancing before the rate increases. Is this a good idea to save money on interest now while the rates are high? Or is it too risky?
Asked By Brad | Bozeman, MT | 44 views | Finance Legal Info | 4 weeks ago
Answer(1)
Sort By:
The risk assessment depends on you and your long term goals. An ARM can be a great tool if approached in the correct way. Do your research to determine what the financial saving may be and the risk involved if the rates change up or down. Find a local lender (or two) that will be straightforward with you about the program and not just try to sell you a loan. Anticipating mortgage rates changes is like gambling or predicting the weather. There is some skill involved as well as an element of chance.

Related Questions

  • If I sell my home, will my boyfriend receive part of the sale?

    I wanted some clarification before deciding to put my home on the market. My boyfriend and I purchased a home together several years ago. We split up so he signed a quitclaim deed but is obviously still on the loan. If I want to sell my home that I have been making payments on myself for the last 8 years. Does he need to sign anything and would he be entitled to any of the sale money?

    • Asked by Eileen K.
    • 872 views
    • Finance & Legal Info
    • 3 years ago
  • Can the new owner of the rental property I live in kick me out?

    The rental property that I'm living in now was sold to a new owner. The new owner wants to kick me out, remodel the unit, and re-rent the unit for a higher price. Is that legal?

    • Asked by Mario Z.
    • Los Angeles, CA
    • 763 views
    • Finance & Legal Info
    • 3 years ago