You don't have to give an arm to get a lower rate
Rising interest rates compounded with increasing home prices are causing affordability issues for many buyers. To keep payments low, you won't have to give an arm, but more buyers are considering getting an ARM, adjustable-rate mortgages. Mortgage rates are near its highest point since 2009. "While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months." said Sam Khater, Freddie Mac's Chief Economist. A $400,000 home with 10% down payment and a 30-year term has the choice of a 5.27% fixed-rate or 3.96% for a 5/1 adjustable-rate mortgage. The principal and interest payment will be $1,992.40 for the fixed-rate and $1,710.40 for the adjustable rate saving the buyer $281.99 per month for five years. There is an additional savings for the buyer choosing the adjustable-rate mortgage because the unpaid balance at the end of the five-year fir